Pots and Pans Inc., a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell Corp., a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the alternative market-entry strategy that Pots and Pans is engaged in?

Question

Quizplus · Accepted Answer

In this scenario, Pots and Pans Inc. is engaged in direct exporting. With direct exporting, a company sells to a customer in another country. This method is the most common approach employed by companies taking their first international step because the risks of financial loss can be minimized.