Indirect export has two advantages. First, it involves less investment and second it involves less risk.

Question

Quizplus · Accepted Answer

Indirect export involves selling goods to an intermediary or a third-party company that helps in exporting the goods to the target market. As the intermediary takes care of the export process, the company doesn't need to make substantial investments in infrastructure, research, or marketing activities. Also, the intermediary assumes the risk of the export process, such as customs clearance or payment issues, which reduces the risk for the company. Therefore, both advantages are true, making option A the correct answer.

Indirect Export Has Two Advantages