Paralegal Exam Prep

Category - Legal Envrmt

When a company uses distributors to sell its products internationally, it is using:
  1. International exporting
  2. Indirect exporting
  3. Direct exporting
  4. Intermediate exporting
  5. Licensing
Explanation
Answer: B. When a company uses distributors to sell its products internationally, it is using indirect exporting. Indirect exporting is when a firm sells its domestically manufactured products internationally through an intermediary. While such an arrangement decreases the company's profit, it is a relatively easy means for a company to enter into the international market.
Category: Legal Environment
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