Question

Hippos is a manufacturer of consumer goods. It intends to sell its products in Taiwan as it is looking to enter into Asian markets. It does not want to make any equity investment and prefers to minimize any risk of loss in the foreign market. It is also willing to settle for a low rate of return and little control. Which of the foreign market-entry strategies is Hippos most likely to pursue? Multiple Choice direct foreign investment joint venture indirect exporting strategic alliance licensing

Answer 1

Answer:

The correct answer is Indirect exporting.

Explanation:

Indirect exporting is one that is carried out through third parties who act as intermediaries, and who in turn are responsible for all legal procedures in the destination country. In this, the producing company only has the obligation to put the products in the port and the buyer is in charge of the entire import, transport and distribution process within the destination country.