How Does Using an Exporting Intermediary Limit the Risk Involved

question 145

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)This approach involves limited risk because the company has no direct investment in the foreign country.

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Definitions:

Maturity Value

The total of principal plus interest due on the maturity date of a loan or investment.

Effective Rate

The actual annual interest rate that an individual earns or pays on a loan, investment, or financial product, accounting for the effect of compounding.

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Interest calculation method where interest is added to the principal sum every month.

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