The Difference Between Direct and Indirect Exporting Is That Indirect

question 16

Multiple Choice

The difference between direct and indirect exporting is that indirect exporting involves ________.

• A) higher risks
• B) self-handling of exports
• C) greater returns
• D) more product alterations
• E) less investment

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Definitions:

Demand Heterogeneity

Describes the variation in consumers' preferences and needs, which can influence the market strategy of businesses.

Government Failure

Occurs when government intervention in the economy causes inefficiencies or leads to an allocation of resources that does not maximize societal welfare.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.