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The mode of entry through which an international business firm can begin international marketing without making direct investments abroad is exporting. Exporting is one of the simplest, least risky, and most commonly used methods of entering foreign markets. Under this mode, a firm produces goods or services in its home country and sells them to customers in another country. The firm does not establish manufacturing facilities, offices, or other major productive assets in the foreign country. Instead, the products are transported from the domestic market to the overseas market either directly by the exporting firm or indirectly through intermediaries. Exporting can be broadly classified into direct exporting and indirect exporting. In indirect exporting, the producer sells its products to domestic export intermediaries, such as export houses, trading companies, export agents, or merchant exporters. These intermediaries undertake activities such as finding foreign buyers, arranging transportation, documentation, insurance, and sometimes financing. The producer therefore has relatively little involvement in international marketing. This method is particularly suitable for firms that are entering international markets for the first time and have limited knowledge, resources, and experience in foreign trade. In direct exporting, the producer itself deals with foreign customers, distributors, ______ ____ __________ __________ ___ _________ _________ ______ ____ ______ ____.
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