In Japan, the Center Firm in a Strategic Network of Vertical

question 88

Multiple Choice

In Japan, the center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT

• A) reducing its transaction costs by promoting longer-term contracts with subcontractors.
• B) enabling engineers in upstream companies to have better communication with those companies with whom it has contracts for services.
• C) encouraging subcontractors to modernize their facilities and providing them with technical and financial assistance to do so.
• D) decreasing communications between network members to reduce communication costs.

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Definitions:

Promotional Allowances

Discounts or financial incentives offered to retailers or distributors to encourage the promotion or sale of a product.

Geographical Adjustments

Modifications or adaptations made to products, services, or strategies to accommodate specific geographical locations and their unique demands or regulations.

Demand-Oriented

An approach focusing on meeting customer demand through tailored products, pricing strategies, and distribution channels.

Incremental Analysis

An accounting method used to evaluate the financial impact of business decisions by analyzing the additional costs and benefits of changing from the current situation.