What is similar to direct exporting but involves the exporter owning the foreign intermediation operation?

In the context of international business, the option that refers to a situation similar to direct exporting, but involves the exporter owning the foreign intermediation operation, is indeed the establishment of a company-owned foreign subsidiary.

This method allows the exporter to maintain greater control over operations in the foreign market as they directly own the subsidiary. Unlike direct exporting, where a company sells directly to customers overseas, a company-owned subsidiary allows for a more integrated approach, enabling the exporter to manage all aspects of the business in that market, including distribution, marketing, and customer service. This can lead to a better understanding of the local market and potentially more effective strategies.

The other options do not align with this definition. Direct exporting typically involves selling goods to customers abroad without intermediary ownership. Indirect exporting involves selling through intermediaries, which means the exporter does not own the operation in the foreign market. Therefore, the most accurate choice reflecting ownership of the foreign operation while still being engaged in export activities is a company-owned foreign subsidiary.