All of the Following Observations Are True of the Global

question 9

Multiple Choice

All of the following observations are true of the global distribution strategy except

• A) Selling to resident buyers, export agents, or export merchants located in the United States constitutes the indirect channel of distribution.
• B) Manufacturers have greater control over distribution when they select agents and distributors located in foreign markets.
• C) If manufacturers establish their own foreign branch, they greatly increase control over their global distribution system.
• D) Agents located in foreign markets assume title to the manufacturers' products, while distributors do not.

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Definitions:

Quantity Supplied

The amount of goods or services that producers are willing and able to sell at a specific price.

Inferior Good

A type of product for which demand decreases as the income of the consumer increases.

Cross Elasticity

Cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good, identifying substitute or complementary relationships.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to buy at a specific price level, at a given point in time.