The investment and risk of direct exporting are somewhat greater than indirect exporting but so is the potential return.

Question

Quizplus · Accepted Answer

Direct exporting involves more investment and risk than indirect exporting because the exporter is responsible for all aspects of the export process, such as transportation, customs clearance, and marketing in the foreign market. However, this also provides greater control over the export process and has the potential for higher profits compared to indirect exporting, where the exporter relies on intermediaries such as agents or distributors to handle the export process.

The Investment and Risk of Direct Exporting Are Somewhat Greater