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:

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The percentage of the face value that is paid as interest on a bond annually.

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A valuation method that estimates the price of a stock based on the assumption that dividends will increase at a constant growth rate.

Expected Growth Rate

The anticipated rate at which a company, asset, or economy is expected to grow in the future.