Exporting can be a way to test market demand for a product. many companies turn to agents and/or distributors to represent them in foreign markets. this approach minimizes.

This approach minimizes the risk business has to take during foreign ventures. Such as finding new markets, storing the products till distribution, handling customer records and grievances and so on.

In other words, the cost of participating overseas.

Explanation:

Imagine you own a company that produces toys. Exporting your own product is profitable. Yet when the demand and the customer base grow, it becomes difficult to hand the distribution of the product, financials, tax/legal requirements and documentation all by your self.

An authorized agent or a distributor make the work much easier as they support you in various tasks we've mentioned above.

In the process, you'll have more time to think of new ways to grow your business while your agent/distributor handle the day to day tasks in operations.

answer; risk transference;