Using a distributor reduces an exporter's risk.

Question

Quizplus · Accepted Answer

By using a distributor, an exporter can effectively outsource the sales and distribution process, allowing them to focus on production and reducing their exposure to market risk. The distributor assumes some of the risk of selling the exporter's products in their local market, which means that the exporter's financial losses are limited if the product doesn't sell well or if there are economic fluctuations.

Using a Distributor Reduces an Exporter's Risk