CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

Question: 1 / 400

Which of the following best describes exporting as a market strategy?

Focusing on domestic sales only

Utilizing existing distribution channels abroad

Exporting as a market strategy involves selling domestically produced goods to customers in foreign markets. This strategy allows companies to leverage their existing products and expand their market reach without the complexities associated with establishing a physical presence in another country. By utilizing existing distribution channels abroad, businesses can effectively connect with international customers, ensuring that their products reach the desired market more efficiently.

The option emphasizing the use of existing distribution channels abroad highlights the core of exporting—taking advantage of established networks to facilitate sales in foreign regions. This approach helps companies minimize risks and costs associated with market entry compared to investing in local manufacturing or creating new distribution strategies from scratch.

In contrast, focusing solely on domestic sales limits the company's market potential and profitability. Establishing local manufacturing plants represents a deeper commitment to a foreign market that typically indicates a more complex strategy, such as foreign direct investment, rather than exporting. Implementing exclusive contracts for territorial sales might be part of a broader strategy but does not directly define the practice of exporting itself. Therefore, utilizing existing distribution channels abroad encompasses the essential concept of exporting effectively.

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Establishing local manufacturing plants

Implementing exclusive contracts for territorial sales

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