The mode of entry through which an international business firm can begin international marketing without making direct investments abroad is exporting. Exporting is one of the simplest, least risky, and most commonly used methods of entering foreign markets. Under this mode, a firm produces goods or services in its home country and sells them to customers in another country. The firm does not establish manufacturing facilities, offices, or other major productive assets in the foreign country. Instead, the products are transported from the domestic market to the overseas market either directly by the exporting firm or indirectly through intermediaries. Exporting can be broadly classified into direct exporting and indirect exporting. In indirect exporting, the producer sells its products to domestic export intermediaries, such as export houses, trading companies, export agents, or merchant exporters. These intermediaries undertake activities such as finding foreign buyers, arranging transportation, documentation, insurance, and sometimes financing. The producer therefore has relatively little involvement in international marketing. This method is particularly suitable for firms that are entering international markets for the first time and have limited knowledge, resources, and experience in foreign trade. In direct exporting, the producer itself deals with foreign customers, distributors, agents, wholesalers, retailers, or other business organizations. The firm may establish an export department or appoint foreign sales representatives and distributors. Although direct exporting requires greater involvement than indirect exporting, it still generally avoids the substantial capital commitment associated with establishing production facilities abroad. The exporter has greater control over marketing activities, customer relationships, pricing, and distribution than under indirect exporting. The basic process of exporting involves identifying a foreign market, studying customer requirements, selecting products suitable for that market, finding foreign buyers or intermediaries, negotiating prices and terms, completing export documentation, arranging transportation and insurance, complying with customs and regulatory requirements, and receiving payment from the foreign buyer. Thus, exporting enables a firm to extend its existing production capabilities to international markets without undertaking large-scale investment in foreign countries. One of the major merits of exporting is that it requires relatively low investment compared with other international entry modes such as foreign direct investment, wholly owned subsidiaries, or international manufacturing operations. A company can use its existing domestic production facilities to serve foreign customers. This reduces the financial burden and makes internationalization possible even for small and medium-sized enterprises. Exporting also involves lower business risk. Since the firm does not establish expensive production facilities in the foreign country, it is less exposed to the risks associated with foreign investment. Political instability, changes in foreign investment regulations, nationalization, changes in taxation, and other country-specific risks have a comparatively smaller direct effect on an exporting firm. If a foreign market does not