which type of exporting has the least amount of commitment and risk but will probably return the least profit

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02-07-2021
Business

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which type of exporting has the least amount of commitment and risk but will probably return the least profit

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Parrainidn Parrainidn · Answer 1 · 2021-07-03T23:33:57-04:00

Answer: Indirect Exporting

Explanation:

Indirect exporting describes a scenario where an entity exports to another country through an intermediary. They essentially sell to this intermediary and this intermediary then sells to consumers in other countries.

Much like investment banks underwriting stock, this type of exporting has very little risk and commitment attached because it simply involves one selling everything to an intermediary. The company exporting has therefore absolved itself of further risk which will then be incurred by the intermediary. t

The intermediary will however buy the goods at a discount due to the risk they take on. As a result, this gives less profit.

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