Which of the following is most appropriate for a company new to exporting?

When a company is new to exporting, indirect exporting is the most appropriate choice because it allows the business to enter international markets with reduced risk and lower initial investment compared to direct exporting. In indirect exporting, the company partners with intermediaries who are familiar with the foreign markets, logistics, and regulations. This makes it easier for a new exporter to navigate the complexities of international trade without having to establish a significant presence abroad right away.

By utilizing intermediaries, such as exporters or trading companies, a new business can focus on its core operations while relying on experienced partners to handle the intricacies of selling products in foreign markets. This can lead to a more gradual and manageable entry into international trade, making the process smoother and less daunting for companies that are unaccustomed to the challenges that come with exporting.

While direct exporting would require the company to handle all aspects of the export process itself, it can be risky and resource-intensive, which might not be suitable for a newcomer. Foreign direct investment typically involves significant capital and commitment to establishing operations in a foreign country, making it a less feasible option for a company just starting to explore international opportunities. Licensing agreements might provide entry into markets but often entail relinquishing some control over the product and might be more complicated for