By limiting the number of trading partners,a manufacturer is most likely able to reduce transaction costs for all of the following reasons EXCEPT having________.

Question

Quizplus · Accepted Answer

Sales promotions are marketing strategies aimed at increasing demand or visibility of products, and their size or frequency doesn't necessarily correlate with the number of trading partners a manufacturer has. Reducing the number of trading partners primarily affects direct transaction costs, such as travel expenses, inventory holding costs, and costs associated with managing relationships, rather than the scale of sales promotions.

By Limiting the Number of Trading Partners,a Manufacturer Is Most