Consider the Distribution Channels Through Which a Product Manufactured in One

question 216

Multiple Choice

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.Channels of distribution in global marketing are often long and complex.The availability and quality of retailers and wholesalers as well as transportation,communication,and warehousing facilities are often determined by

• A)the seller and the exporter.
• B)a country's stage of economic development.
• C)the seller's international marketing headquarters and the channels between nations.
• D)channels between nations and the channels within the foreign nation.
• E)channels within the foreign nation and the foreign retailer.

Explain the importance of transaction costs in the success or failure of private bargaining solutions to externalities.

Identify and calculate socially optimal quantities and prices in markets affected by externalities.

Analyze the effects of positive and negative externalities on private and social costs and benefits.

Evaluate the role of government interventions such as taxes, subsidies, and regulations in correcting market inefficiencies caused by externalities.

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Definitions:

Marginal Benefits

The supplementary benefit or enjoyment a person gets by consuming another unit of a good or service.

Rational Choice

The theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Positively Correlated

Describes a relationship between two variables where they move in the same direction, meaning if one variable increases, the other also increases and vice versa.

Causation

The relationship between cause and effect, where one event (the cause) directly results in the occurrence of another event (the effect).