A Manufacturer of Lawn Mowers Pays for and Provides Local

question 55

Multiple Choice

A manufacturer of lawn mowers pays for and provides local dealers with professionally-produced commercials for its products. A dealer can pay to have its name, address, and telephone number appear at the end of the commercial. The commercials are much higher quality ads than most local lawn mower dealers could afford by themselves. These commercials provided by the manufacturer for local use are an example of:

• A) Advertising allowances.
• B) Cooperative advertising.
• C) Vertical communication.
• D) Horizontal integration.
• E) None of these is a good answer.

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Definitions:

Nonequity Modes

International business arrangements that do not involve the exchange of ownership shares, such as licensing agreements and management contracts.

Equity Modes

Methods or strategies employed in acquiring ownership or stakes in companies.

Liability of Foreignness

The additional costs and risks that firms operating in a foreign country incur, compared to domestic firms.

Administrative Differences

Discrepancies in management practices, regulations, or procedures within or between organizations.