International Distribution channel

1. What is direct distribution in international markets?

• Selling products through wholesalers

• Using intermediaries to reach customers

• Selling products directly to end consumers

• Partnering with local retailers

Which of the following is NOT an advantage of direct distribution?

• Control over brand image

• Maximized profit margins

• Limited market reach

• Direct customer feedback

In indirect distribution, which of these is NOT considered an intermediary?

• Wholesalers

• Retailers

• Distributors

• End consumers

What is a key characteristic of an export buying agent?

• They purchase products for resale

• They represent the seller in foreign markets

• They represent the buyer in the country of export

• They are responsible for manufacturing products

Which of the following best describes a broker in international trade?

• A party that arranges transactions between buyers and sellers

• A company that manufactures products for export

• An agent that exclusively represents sellers

• A government official overseeing international trade

What is a primary function of a trading company in international distribution?

• Manufacturing products

• Providing legal advice

• Buying and selling products across different markets

• Offering financial services to exporters

In a piggyback arrangement, what role does the "carrier" company play?

• Manufactures products for the "rider" company

• Provides transportation services

• Uses its distribution network to sell another company's products

• Acts as a financial guarantor

What is a key advantage of using an export management company?

• It allows for direct control over foreign operations

• It eliminates the need for any international marketing

• It can serve as an export department for smaller companies

• It guarantees success in all foreign markets

Which of the following is a disadvantage of international indirect distribution?

• Extended market reach

• Access to local expertise

• Lower profit margins

• Reduced operational risks

In a licensing agreement, what does the licensor typically provide to the licensee?

• Financial backing

• Manufacturing facilities

• Rights to use intellectual property

• Guaranteed market share