University of Central Florida (UCF) GEB3375 Intro to International Business Practice Exam 3

A company can utilize various methods to export its products or services effectively, and all the methods listed are valid approaches within the exporting framework.

Direct exporting involves selling directly to customers in the target foreign market. This method allows for more control over the sales process and direct interaction with customers, enabling the exporter to build relationships and gain insights into market needs.

Indirect exporting, on the other hand, involves using intermediaries or agents in the exporting process. This approach can help companies that may lack the resources or knowledge to navigate foreign markets effectively. By leveraging the expertise and networks of intermediaries, businesses can expand their reach with potentially lower risk.

Establishing a company-owned foreign subsidiary allows a company to have a more permanent presence in the foreign market. This method facilitates direct control over operations and ensures compliance with local regulations, as well as providing greater insights into market dynamics.

Since each of these methods (direct, indirect, and establishing a company-owned subsidiary) are legitimate ways for a company to export, selecting the option that encompasses all of them is indeed the comprehensive choice.