When Managing Distributors in Emerging Markets, MNCs Should

question 57

Multiple Choice

When managing distributors in emerging markets, MNCs should:

• A)pick partners with extensive local product-market knowledge.
• B)choose partners with excellent English-speaking skills.
• C)focus on entrepreneurs to build local good-will.
• D)only enter markets with a company-owned distributor network.
• E)select distributors who are competent working with MNCs.

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Definitions:

Intrinsic Rewards

In expectancy theory, the internal factors related to the value of work, including the amount of creativity allowed, the degree of responsibility, and the satisfaction of helping others.

Satisfaction

A state of fulfillment or contentment resulting from achieving what one desires or from the successful resolution of needs or challenges.

ERG Theory

A theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: existence, relatedness, and growth.

Frustration-Regression Principle

A concept suggesting that when an individual encounters obstacles or frustrations, they may revert to earlier behaviors as a coping mechanism.