What Is the Primary Disadvantage of Using Wholly Owned Affiliates

question 15

Multiple Choice

What is the primary disadvantage of using wholly owned affiliates as the means of entering a foreign market?

• A)dumping  
• B)countertrading  
• C)nontariff barriers  
• D)costs

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Definitions:

Nonstore Retailing

Retail operations that sell goods and services through methods other than a traditional brick-and-mortar storefront, including online, direct mail, and television shopping.

Direct Selling

A marketing strategy where products are sold directly to consumers, bypassing traditional retail environments.

Direct Marketing

A type of advertising strategy that sends promotional messages directly to potential customers individually, rather than through a mass medium.

Vending Machines

Automated machines that dispense items such as snacks, beverages, and tickets to consumers after a payment has been made.