Answer to Question 1
Both indirect and direct exporting have less risk than other forms of market entry. However, indirect exporting offers less risk than direct exporting. On the other hand, direct exporting offers more control of the marketing mix by the firm. Indirect exporters use middlemen such as export management companies, trading companies, or agents/brokers to distribute products overseas. Direct exporters have their own in-house exporting expertise, usually in the form of an exporting department. Direct exporters are likely to use freight forwarders, shipping lines, insurers, merchant middlemen, and retailers in the distribution process.
Answer to Question 2
True
