The most common first step for companies entering foreign markets is _________.
A) Countertrade
B) foreign licensing
C) indirect exporting
D) direct exporting

Question

Quizplus · Accepted Answer

Direct exporting is the most common first step for companies entering foreign markets as it involves the export of goods directly to customers in foreign markets. This allows companies to test the waters of a new market without making significant investments in production facilities or partnerships. Once a company gains experience and confidence in the foreign market, they may consider other options like foreign licensing or countertrade. Indirect exporting, while an option, involves relying on intermediaries to export goods on behalf of the company and may not be the most preferred option for companies wishing to control their brand and market position.

The Most Common First Step for Companies Entering Foreign Markets