Final answer:
The strategy where a company sells to a home country buyer who then exports the product typically shifts export responsibilities and risks to the buyer. This method contrasts with foreign direct investment, where a company makes a long-term commitment in a foreign market.
Step-by-step explanation:
The market strategy in question involves a company selling its products to a buyer, such as an importer or distributor, within the home country, and then that buyer takes on the responsibility of exporting the product to the end market.
This strategy is often utilized to simplify the process for the producer, as it shifts many of the export complexities to another party. This party may assume some managerial responsibility and risk associated with entering the foreign market.
Addressing the larger context of international trade, it's important to note that this form of market entry contrasts with foreign direct investment (FDI), where a company invests directly in facilities to produce or market a product in a foreign country.
FDI implies a more long-term commitment in the target country and often results in significant influence or control over the venture. In contrast, selling to a domestic intermediary allows for quicker adjustment to the company's international exposure and requires less commitment of resources.
Moreover, the discussion of trade barriers and protectionism highlights the complex effects of these policies on domestic and foreign firms, consumers, and the economy as a whole. While the intent of protectionist policies is often to shield domestic industries from foreign competition, the result can be higher prices and fewer choices for consumers, in addition to retaliatory actions from trading partners.