Question

A company that assigns high priority to its export business will probably use which of the following arrangements for handling export responsibilities?

1) Direct exporting
2) Indirect exporting
3) Licensing
4) Franchising

Answer 1

A company prioritizing export business is likely to use direct exporting to maintain control over the export process and build closer relationships with overseas customers, retaining more of the profits.

Step-by-step explanation:

If a company assigns high priority to its export business, it is likely to use direct exporting. Direct exporting means that the company sells its products directly to buyers in another country without using intermediaries. This approach allows the company to have greater control over the export process, build closer relationships with overseas customers, and retain more of the profits compared to indirect exporting. By contrast, indirect exporting involves selling to an intermediary, who then sells the products abroad. Licensing and franchising might also be used in international markets, but these strategies involve giving rights to other parties to use certain properties or business models, rather than focusing on the export of goods.