Indirect Exporting Occurs When a Firm Sells Its Domestically Produced

question 31

Multiple Choice

Indirect exporting occurs when a firm sells its domestically produced products in a foreign country

• A) in violation of a quota.
• B) without paying import tariffs.
• C) without paying export duties.
• D) through a joint venture.
• E) through an intermediary.

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Definitions:

Drop Product

A strategy or decision by a company to discontinue the production, sale, or support of a product line or item.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.

Discount

A reduction from the usual cost of something, often applied to encourage sales or provided for early payment.