Q.When a firm sells its goods to an export intermediary in its own home country, who then arranges the sale abroad, this is called:

Exporting can be carried out with or without the exporting firm dealing directly with the foreign buyer, and this distinction is exactly what separates the two forms of exporting.

The question describes a specific exporting arrangement and asks students to name it correctly.

Option (A) Direct exporting — this would mean the firm deals directly with the foreign buyer, or through its own office/agent based in the foreign market itself, without a home-country intermediary. This does not match the description given, so it is not the answer.

Option (B) Indirect exporting — this exactly matches the description: the firm sells to an export intermediary or merchant located in its OWN home country, and that intermediary handles the actual sale into the foreign market. This is the correct answer.

Option (C) Licensing — licensing involves granting rights to use a brand, patent, or technology for a royalty; it does not involve selling physical goods through an intermediary at all. Not the answer. …

Students sometimes assume 'direct' and 'indirect' exporting refer to whether the goods travel directly to the foreign country; the actual distinction is about WHO handles the sale — the exporting firm itself ( …