In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer’s goods in the overseas market and will receive a:Group of answer choicessalary as a direct employee of the producer.commission on the sale after taking ownership of the goods.monthly or annual retainer without taking ownership of the goods.monthly or annual retainer and take ownership of the goods.commission on the sale without taking ownership of the goods.

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.Group of answer choicesTrueFalse

An exporter delivers goods to a retailer for sale to the public. If the exporter is paid only after sale to third parties, the arrangement is a

A U.S. cosmetics manufacturer would like to sell products Japan, India, and South Korea and is considering using an export agent instead of trading directly. One advantage of this arrangement is that the company would not have to deal withMultiple Choiceforeign currencies.a middleman.rising labor prices.the procurement of resources.

Indirect exporting: firm operates through intermediaries examplesExport house –Confirming house –Buying house –‘piggybacking’; benefits to ‘rider’ and ‘carrier’Question 6AnswerTrueFalse

Consider the following economic agents: a. the governmentb.  consumersc. producersWho, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?Group of answer choicesthe governmentproducersconsumersconsumers and producers