Small Manufacturers Often Are Successful Because Wal-Mart Agrees to Carry

question 13

Multiple Choice

Small manufacturers often are successful because Wal-Mart agrees to carry their products. If Wal-Mart does not like a price increase,however,it often will refuse to do business with the manufacturer. At this point,many small manufacturers will offer price reductions-they fear failure if they lose the Wal-Mart account. Which of the following best describes the relationship between these small manufacturers and Wal-Mart?

• A)buyer dependent  
• B)relationship based  
• C)transformational  
• D)supplier dependent

---

Definitions:

Industrial North

The region in a country, historically in the United States, known for its heavy industry and manufacturing, contrasting with the agrarian South.

Protective Tariffs

Tariffs imposed by a country to protect its domestic industries from foreign competition by increasing the cost of imported goods.

Trade Deficit

A situation that occurs when a country imports more goods and services than it exports.

Import

Goods or services brought into one country from another for the purpose of sale.