Which of the Following Is the Reason Why Global Retailers

question 13

Multiple Choice

Which of the following is the reason why global retailers like IKEA, Costco, Sears Roebuck, and Walmart are becoming major domestic middlemen for international markets?

• A) They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations.
• B) They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms.
• C) They have minimum investment costs as they do not commit to investing in company personnel.
• D) They serve as the producer's export department but have a short-term relationship, cover only one or two markets, and operate on a straight commission basis.
• E) They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining.

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Definitions:

Sellers

Entities or people who make products or services available for purchase in the market.

Total Surplus

A measure combining the gains of consumers and producers, indicating the overall economic benefit derived from transactions.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Good

A tangible item that is produced or manufactured for sale to consumers in the market.