A company that uses a strategy of selling its products to a distributor in another country would be using <u>exporting.</u>
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<h3><u>How Do Exports Work?</u></h3>
Exports are products and services made in one nation and offered to customers in another. Imports and exports together make up global trade.
Because they give people and businesses access to a larger market for their products, exports are crucial to modern economies. Fostering economic commerce, and boosting exports and imports for the advantage of all trading parties, is one of the primary goals of diplomacy and foreign policy between countries.
<u>Benefits of Exporting for Businesses</u>
There are numerous reasons why businesses export their goods and services. If the goods open up new markets or widen existing ones, exports can boost sales and profits and may even offer the chance to gain a sizeable portion of the worldwide market. Exporting businesses diversify their markets to reduce business risk.
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