Which of the following is likely if the distribution channel for a product in the foreign country is long?
A) The foreign country buyers pay a high price.
B) The consumer will pay arms-length price.
C) The profit margin of the sellers increases.
D) The intermediaries are motivated to reship the product to another country to earn higher profits.
E) The seller can increase profit margins by charging a uniform price.

Question

Quizplus · Accepted Answer

If the distribution channel for a product in a foreign country is long, it is likely that the foreign country buyers will pay a high price. This is because each intermediary in the channel adds their own markup, leading to a higher final price for the product.

Which of the Following Is Likely If the Distribution Channel