Which of the Following Is True of a Global Distributions

question 65

Multiple Choice

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

• A) When manufacturers assume the functions of foreign agents or wholesalers and establish their own foreign branch, they greatly decrease control over their global distribution system.
• B) Manufacturers become less directly involved when they select agents and distributors located in foreign markets.
• C) Since manufacturers are located in the market area, they have greater potential to influence other intermediaries such as wholesalers and retailers.
• D) When manufacturers assume the functions of foreign agents or wholesalers and establish their own foreign branch, manufacturers' effectiveness will depend on independent intermediaries.

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Definitions:

Tax Agencies

Governmental organizations responsible for administering and collecting taxes.

Utility Companies

Businesses that provide essential services such as water, electricity, and gas to homes and companies.

Purchase Services

The act of buying services rather than physical goods from a provider or vendor.

Receive Bill

The act of getting an invoice or bill from a vendor that outlines the amount owed for goods or services received.