Final answer:
An Export Management Company (EMC) is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other
Step-by-step explanation:
The independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other is known as an Export Management Company (EMC).
This kind of intermediary facilitates international trade by helping companies navigate the complexities of exporting to in-between nations.
These nations may not be powerful enough to dictate policy but still act as a major source of raw materials and offer an expanding middle-class marketplace, creating ample opportunities for international business engagements.
EMCs make it easier for producers of intermediate goods—which are outputs provided to other businesses at an intermediate stage of production, not to final users—to focus on their core competencies while the EMC manages the challenges of global trade.
This includes adhering to different regulatory standards and cultural norms, as well as managing logistics and foreign relations.
Furthermore, EMCs facilitate intra-industry trade, where international trade of goods occurs within the same industry, and they help companies benefit from the splitting up of the value chain, meaning that different stages of producing a good happen in different geographic locations.
In this manner, a small economy can take full advantage of economies of scale, while also benefiting from competition and the diversity offered by multiple producers across global markets, which is illustrative of monopolistic competition.
Here, markets feature many firms with slightly different products, such as the varying stores within the Mall of America that offer different clothing options.