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 increase
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

A long distribution channel typically involves multiple intermediaries, each adding their own markup, leading to higher prices for the end buyers in the foreign country.

Which of the Following Is Likely If the Distribution Channel