Berry Corp. sells microprocessors to an electronic equipment manufacturer in this country who then sells equipment containing the microprocessors to Japan. Berry Corp. is engaging in ______.
A) indirect exporting
B) countertrade
C) foreign licensing
D) international production

Question

Quizplus · Accepted Answer

Indirect exporting involves a middleman or intermediary in which a company sells its products to a domestic intermediary who then exports the product. In the given scenario, Berry Corp. is selling its product to a domestic electronic equipment manufacturer who then exports the product to Japan, making it an example of indirect exporting. Countertrade involves the exchange of goods and services instead of money, foreign licensing involves a company licensing its technology to a foreign company, and international production involves a company establishing its manufacturing facilities in foreign countries.