Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

Question

Quizplus · Accepted Answer

Indirect exports involve selling to an intermediary in the home country, who then exports the product. The most basic mode of entry typically considered is direct exporting, where a company sells directly to customers in a new market, not through intermediaries. Indirect exports do not necessarily capitalize on economies of scale in production concentrated in the home country; that concept is more directly related to direct exporting or establishing foreign production facilities.

Indirect Exports Are the Most Basic Mode of Entry,capitalizing on Economies