Final answer:
Indirect exporting is when a company sells its goods to an intermediary who then exports them, not directly to manufacturers in another country. The relocation of U.S. factories to other countries, like China, is called offshoring and is related to international business strategies.
Step-by-step explanation:
The statement provided is false. Indirect exporting typically involves a company selling its products to an intermediary, such as an export management company, an export trading company, or an international trader, who then sells the products in foreign markets. This allows the original company to export its goods without dealing with the complexities and risks of international trade directly.
When U.S. manufacturers relocate operations to another country, like China, it's a business strategy known as offshoring. This process reduces costs due to lower labor expenses and potentially other economic benefits in the foreign country.
Given the global nature of trade, it's clear that various elements such as the food we eat, the clothes we wear, and the cars we drive are all connected to international exporting and importing markets. Thus, the economic prosperity of many industries and their workers is tightly linked with international trade and export sales.