Which of the Following Is an Example of Indirect Exporting

question 90

Multiple Choice

Which of the following is an example of indirect exporting?

• A)An Australian company allowing a local firm in China to use its technical know-how in producing a product
• B)An American fast-food chain allowing a local chain of restaurants to operate its business in India
• C)A South Korean electronics firm selling its televisions through a local electronics retailer in the host country
• D)A British company selling its machinery to a Canadian manufacturer that is licensed to produce and market goods in that country
• E)A Korean chemical company allowing a Japanese company to reproduce the chemical product in the local Japanese market

---

Definitions:

Baby Formula

A manufactured food designed and marketed for feeding to babies and infants, usually prepared for bottle-feeding or cup-feeding from powder or liquid.

Price Decrease

a reduction in the cost of goods or services, often triggered by factors such as increased supply, reduced demand, or competitive pricing strategies.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Inferior Good

A good, such as used clothes, for which demand decreases, or shifts leftward, as consumer income rises.