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:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized trade benefits.

Blankets

Woven coverings used to keep warm, typically utilized during sleeping or resting periods.

Meals

Portions of food consumed at any specific time during the day, such as breakfast, lunch, or dinner.

Organizing

The management function of arranging people, tasks, and resources to accomplish work and achieve objectives.