Which of the Following Is True of a Global Distribution

question 16

Multiple Choice

Which of the following is true of a global distribution strategy?

• A) Global distribution strategy involves creating a single channel, common to the home country and the foreign country.
• B) Agents and distributors located in foreign markets perform similar functions as both assume title to the manufacturers' products.
• C) When manufacturers establish their own foreign branch, they greatly decrease control over their global distribution system.
• D) The role of the distribution network in facilitating the transfer of goods and titles and in the demand stimulation process is as important in foreign markets as it is at home.

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Definitions:

Overhead Expenses

costs related to the day-to-day running of a business but not directly tied to producing goods or services.

Selling Price

The amount of money for which a seller offers a product or service to the buyer.

Rate of Profit

A measurement, usually expressed as a percentage, reflecting the profitability of an investment or business compared to the initial cost.

Overhead Expenses

Indirect costs of a business that are not directly linked to a specific product or service, such as rent, utilities, and administrative expenses.