Differentiate between 'direct exporting' and 'indirect exporting'.

The distinction between direct exporting and indirect exporting lies primarily in the manner in which goods and services are sold in foreign markets. Direct exporting entails the manufacturer or supplier selling their products directly to customers or companies in another country. This method often involves establishing direct relationships with foreign clients, managing sales processes independently, and having greater control over marketing and distribution strategies.

On the other hand, indirect exporting involves utilizing intermediaries or agents in the exporting country to facilitate the selling process in foreign markets. This method can include working with distributors, trading companies, or other middlemen who possess the necessary market knowledge and networks to navigate foreign business environments effectively. Since these intermediaries take on some of the responsibilities related to marketing and sales, the initial exporter can minimize their own investment and risk.

The other options suggest incorrect limitations or prerequisites that don't accurately represent the fundamental differences between the two exporting methods. For instance, the notion that direct exporting is restricted to regional markets while indirect exporting covers a global scope oversimplifies the nature of both methods. Additionally, claiming that direct exporting requires government approval while indirect exporting does not misrepresents regulations that may apply to both. Lastly, the comparison of costs between the two methods does not universally hold true since the expenses can vary based on various factors