Indirect Exporting Quiz

What is one benefit of exporting indirectly?

• The exporting firm has local market knowledge and contacts with potential customers.

• The intermediary will have other products, perhaps from competitors, to sell as well.

• Transport and administrative procedures become the responsibility of the exporting firm.

• It is cheaper for the exporting firm as fewer employees are involved in selling abroad.

What becomes the responsibility of the overseas agent or trading company in indirect exporting?

• Selling products from just one business

• Transport and administrative procedures

• Marketing the product

• Visits from senior managers

Why is it cheaper for the exporting firm in indirect exporting?

• The overseas agent or trading company has local market knowledge.

• Fewer employees are involved in selling abroad.

• Senior managers make fewer visits.

• The intermediary has other products to sell.

What is one limitation of exporting indirectly?

• The intermediary will have other products, perhaps from competitors, to sell as well.

• Commission or payment needs to be paid to the agent or trading company.

• Transport and administrative procedures become the responsibility of the agent.

• The exporting firm has local market knowledge and contacts with potential customers.

What is the responsibility of the agent or trading company in indirect exporting?

• Transport and administrative procedures

• Marketing the product

• Visits from senior managers

• Selling products from just one business

What reduces the exporting firm's profit margin in indirect exporting?

• Commission or payment needs to be paid to the agent or trading company.

• The intermediary will have other products, perhaps from competitors, to sell as well.

• The overseas agent or trading company has local market knowledge.

• Transport and administrative procedures become the responsibility of the agent.

What is one potential disadvantage of exporting indirectly?

• It is cheaper for the exporting firm as fewer employees are involved in selling abroad.

• The exporting firm has local market knowledge and contacts with potential customers.

• The intermediary will have other products, perhaps from competitors, to sell as well.

• Transport and administrative procedures become the responsibility of the agent.

What is the advantage of the overseas agent or trading company in indirect exporting?

• Visits from senior managers

• Transport and administrative procedures

• Marketing the product

• Selling products from just one business

What is the responsibility of the exporting firm in indirect exporting?

• Visits from senior managers

• Selling products from just one business

• Transport and administrative procedures

• Marketing the product

What affects the focus and effort given to selling products from just one business in indirect exporting?

• The exporting firm has local market knowledge and contacts with potential customers.

• Transport and administrative procedures become the responsibility of the agent.

• Commission or payment needs to be paid to the agent or trading company.

• The intermediary will have other products, perhaps from competitors, to sell as well.