In Which of the Following Modes of Distribution in the Foreign

question 37

Multiple Choice

In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment?

• A) Export management companies
• B) Trading companies
• C) Export associations
• D) Direct sales force
• E) Complimentary marketers

---

Definitions:

Equity Costs

The cost of obtaining capital through the sale of shares in the company, including dividends payouts and the dilution of share value.

Debt Costs

The total expenses involved in borrowing money, including interest payments and fees.

Flotation Costs

The expenses incurred by a company in issuing new securities, including legal, accounting, and underwriting fees.

WACC

Abbreviation for Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, reflecting the cost of each type of capital (debt, equity, etc.) to the overall business.