In the Implementation of a Direct Exporting Approach, an Export

question 16

Multiple Choice

In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer's goods in the overseas market and will receive a:

• A) salary as a direct employee of the producer.
• B) commission on the sale after taking ownership of the goods.
• C) monthly or annual retainer without taking ownership of the goods.
• D) monthly or annual retainer and take ownership of the goods.
• E) commission on the sale without taking ownership of the goods.

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Definitions:

World Price

The international market price at which goods and services are bought and sold on the global market.

International Trade

The exchange of goods and services between countries, which allows for greater variety, competition, and efficiency in markets globally.

Consumer Surplus

The distinction between the price consumers are willing to offer for a good or service and the price they really pay.

Agricultural Subsidies

Agricultural subsidies are financial incentives provided by the government to farmers or agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.