Scenario: Owen's HomeCare Products
Owen McCain, owner of Owen's HomeCare Products, is considering going international. He feels that the products he manufactures will be well-received, especially in developing countries. He wants to understand the exporting process and then scale his exporting activities accordingly.
-If Owen's HomeCare Products decides to sell their products to intermediaries who then resell them to buyers in target markets,the company would be engaging in ________ and use the services of an Export Management Company (EMC).
A) indirect exporting
B) counterpurchase
C) an acquisition
D) a joint venture

Question

Quizplus · Accepted Answer

Indirect exporting involves selling products to intermediaries who then resell them to buyers in target markets. This is a common method for small and medium-sized businesses who are just starting to export. Using the services of an Export Management Company (EMC) is also common for businesses engaging in indirect exporting as the EMC can provide expertise and guidance on the exporting process. Counterpurchase, acquisition, and joint venture are not relevant to the scenario described.