Which of the following is true of a nonmultinational enterprise and its use of agents?
A) Its agents can only be individuals and not firms.
B) Its agents are considered as subsidiaries.
C) Its relationship with agents is solely governed by the laws of the parent's home country.
D) Its agents have the authority to sell the parent's products or services in that country.

Question

Quizplus · Accepted Answer

Nonmultinational enterprises often use agents to sell their products or services in a foreign country where they do not have a physical presence. The agents hired by the nonmultinational enterprise have the authority to sell the parent's products or services in that country. The other options are incorrect because nonmultinational enterprises can use firms as agents, the agents are not considered subsidiaries, and the relationship with agents is subject to the laws of both the parent's home country and the agent's country.

Which of the Following Is True of a Nonmultinational Enterprise