In a short essay, describe how intermediaries facilitate indirect exporting and direct exporting, and explain why international managers go to great lengths to build relational assets with their key intermediaries

What will be an ideal response?

Indirect exporting is accomplished by contracting with intermediaries in the firm's home market who assume responsibility for finding foreign buyers, shipping products, and getting paid. The main advantage of indirect exporting for most companies is it provides a relatively inexpensive way to penetrate foreign markets without the complexities and risks of more direct exporting.

In contrast, direct exporting is typically achieved by contracting with intermediaries located in the foreign market. The foreign intermediaries serve as an extension of the exporter, negotiating on behalf of the exporter and assuming such responsibilities as local supply-chain management, pricing, and customer service. The exporter retains greater control over the export process but also must dedicate substantial time and resources to developing and managing export operations.

Firms develop relationships with their intermediaries in various ways. They can cultivate mutually beneficial, bonding relationships; genuinely respond to intermediary needs; and build solidarity by demonstrating solid commitment, remaining reliable, and building trust.