Does direct exporting involve performing downstream value-chain activities?

Direct exporting entails a company selling its products directly to customers in foreign markets, without intermediaries. This practice typically includes performing downstream value-chain activities, which are focused on the end customer and involve processes for delivering the product, marketing, sales, and customer support. Engaging in downstream activities allows a company to maintain control over its brand, customer relationships, and distribution channels.

Since direct exporting involves direct interactions with the market, companies often engage in promotional activities, market research, and logistics to ensure their products successfully reach consumers. By managing these value-chain activities, companies can better adapt to local market conditions and enhance customer satisfaction.

In contrast, other options may imply a lack of involvement in downstream activities, which would be inaccurate as direct exporters are required to engage in these processes to ensure their success in international markets.