How Does Using an Exporting Intermediary Limit the Risk Involved

question 66

Multiple Choice

How does using an exporting intermediary limit the risk involved with global marketing?

• A) Most exporting intermediaries assume all financial risks on behalf of their clients.
• B) Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved.
• C) Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership.
• D) Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering.
• E) Using exporting intermediaries involves limited risk because the company has no direct investment in the foreign country.

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Definitions:

Restaurant

A business establishment where meals are prepared and served to customers in exchange for money.

Proprietorship

A business owned and operated by a single individual, characterized by the simplicity of setting up and the sole responsibility for any of its debts or liabilities.

Financial Difficulty

A situation where an individual, business, or government faces challenges in meeting its debt obligations or managing its monetary affairs.

Bankruptcy

A legal process where individuals or organizations declare their inability to pay off their debts.