What is the difference between a direct exporter and an indirect expor

QUESTION

What is the difference between a direct exporter and an indirect exporter?

What will be an ideal response?

ANSWER

Answer: A direct exporter sells its products to markets outside of its home country. An indirect exporter sells products to domestic customers, who then use that product as a component of a larger product they sell outside the country.
Explanation: In direct exporting, a company’s products are sold to foreign customers. In indirect exporting, a company’s products are eventually sold to foreign customers, but the company’s direct sale of that product is to a domestic customer.