Which term refers to the risks taken in international sales by an intermediary?

Which term refers to the risks taken in international sales by an intermediary?

• A. Distributor risks
• B. Buyer for export risks
• C. Export-Import risks
• D. Channel risks

Answer: (B)

The term that refers to the risks taken in international sales by an intermediary is often associated with the role of an intermediary who handles the process of selling goods abroad on behalf of another firm, known as the 'buyer for export.' This intermediary assumes several risks, including the uncertainty of international markets, fluctuating currency values, and potential issues with logistics and regulations. The 'buyer for export' takes on the financial risk of purchasing goods with the intention of selling them in foreign markets, meaning they are directly affected by the performance of those sales. In contrast, distributor risks typically relate more to the challenges faced by distributors in managing inventory and meeting local market demands. Export-import risks encompass a broader scope, including risks taken by both exporters and importers rather than specifically those undertaken by intermediaries. Channel risks can refer to the general risks associated within the distribution channels of products but do not pinpoint the intermediary's role in international sales specifically. Thus, the correct term that accurately captures the risks taken by intermediaries in international sales is indeed 'buyer for export risks.'

The term that refers to the risks taken in international sales by an intermediary is often associated with the role of an intermediary who handles the process of selling goods abroad on behalf of another firm, known as the 'buyer for export.' This intermediary assumes several risks, including the uncertainty of international markets, fluctuating currency values, and potential issues with logistics and regulations. The 'buyer for export' takes on the financial risk of purchasing goods with the intention of selling them in foreign markets, meaning they are directly affected by the performance of those sales.

In contrast, distributor risks typically relate more to the challenges faced by distributors in managing inventory and meeting local market demands. Export-import risks encompass a broader scope, including risks taken by both exporters and importers rather than specifically those undertaken by intermediaries. Channel risks can refer to the general risks associated within the distribution channels of products but do not pinpoint the intermediary's role in international sales specifically. Thus, the correct term that accurately captures the risks taken by intermediaries in international sales is indeed 'buyer for export risks.'