The disadvantages of indirect exporting include:
A) firms gain little experience from the transaction.
B) commissions have to be paid to agents.
C) firms are dependent on the agents.
D) all of the above.
E) two of A, B, and C.

Question

Quizplus · Accepted Answer

All of the above options are disadvantages of indirect exporting. Firms may gain less experience from delegating the export process to intermediaries such as agents, and they may have to pay commissions to these third parties, reducing profits. Additionally, firms are often dependent on agents to conduct exporting activities and may have limited control over the process.

The Disadvantages of Indirect Exporting Include