With Indirect Exporting, the Firm Itself Contacts the Potential Consumers

question 53

True/False

With indirect exporting, the firm itself contacts the potential consumers overseas and either sells direct to the end user in the target market, or appoints an overseas agent to act as a distributor for their products in that market.

---

Definitions:

Net Acquisitions

Total installed cost of capital acquisitions minus adjusted cost of any disposals within an asset pool.

Taxable Difference

The difference between the book value and the tax value of an asset, which results in taxable income or deductions.

Capital Acquisitions

The act of obtaining capital assets through purchase, lease, or other means, aimed at increasing the overall value of a business.

Marginal Tax

The tax rate applicable to the last unit of currency earned, indicating the rate at which additional income is taxed.