Scenario: Sanjeer's HomeCare Products
Sanjeer Sengupta,owner of Sanjeer's HomeCare Products,is considering going international.He feels that the products he manufactures will be well received,especially in developing countries.He wants to understand the exporting process and then consider the degree to which he wants to be involved.
-If Sanjeer's HomeCare Products decides to sell to intermediaries who then resell to buyers in target markets,the company would be engaged in which of the following?
A)Indirect exporting
B)Strategic alliance
C)Direct exporting
D)Investment entry

Question

Quizplus · Accepted Answer

Indirect exporting involves selling to intermediaries who then resell to buyers in target markets. This would be the best choice for Sanjeer's HomeCare Products as he is considering going international and wants to understand the exporting process before deciding on the degree of involvement. Indirect exporting allows the company to test the waters and gain experience in exporting without making a significant investment. It also allows the company to benefit from the expertise and distribution networks of intermediaries. Strategic alliance involves partnering with another company to enter a foreign market, direct exporting involves selling directly to buyers in a foreign market, and investment entry involves making a significant investment in a foreign market such as establishing a subsidiary or acquiring a local firm.