In Which of the Following Channel Arrangements Would an American

question 75

Multiple Choice

In which of the following channel arrangements would an American manufacturer exporting goods to a foreign market have the least control over distribution?

• A) Manufacturer uses a resident buyer in the American market.
• B) Manufacturer has an agent in the foreign market.
• C) Manufacturer sells its products to distributors in the foreign market.
• D) Manufacturer sells directly to organizational buyers in the foreign market.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered by sellers equals the quantity of the product that buyers are willing to purchase, without any surplus or shortage in the market.

Equilibrium Quantity

The amount of products or services that are both provided and sought after at the balance price, where the supply meets the demand.

Rent Controls

Government-imposed rules that limit the amount landlords can charge for renting out their property, aiming to keep housing affordable.

Diagram

A simplified drawing showing the appearance, structure, or workings of something; often used in planning or explaining.