When an Exporting Firm Finds That Its Local Agent Is

question 74

Multiple Choice

When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a ________ to handle local marketing, sales, and service.

• A) wholly owned subsidiary
• B) franchising arrangement
• C) turnkey operation
• D) licensing agreement

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Definitions:

Piecework Rate

Rate of pay per unit produced.

Production Workers

Individuals involved in the manufacturing or assembly phase of production, responsible for operating machinery, building goods, and maintaining efficiency on the production line.

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action performed, regardless of time.

Incentive Pay

Compensation above the base salary offered to employees as a motivation for achieving performance targets.