Small Business Intermediaries (Scenario)
Mary's Mosaics is a small business in California that creates custom-designed decorative items from mosaic tiles and glass. The international e-commerce created for Mary's Mosaics generates the majority of the firm's business, although the firm also sells items to U.S. retailers for domestic sale. Mary Boyd, the CEO of Mary's Mosaics, recently received an order from a Spanish retailer for $20,000 worth of mosaic items. Similar orders have been placed from importers in Australia, England, and Canada. Mary needs to identify appropriate foreign intermediaries for each market.
-Which of the following should be established by Mary's Mosaics to avoid intermediary difficulties?
A) It should seek a long-term joint venture partnership.
B) It should use countertrade as the method of payment when doing business with foreign intermediaries.
C) It should seek permanent employment with the foreign intermediary.
D) It should establish a contractual clarification of responsibilities.

Question

Quizplus · Accepted Answer

Mary's Mosaics should establish a contractual clarification of responsibilities with the foreign intermediaries to avoid any potential difficulties or misunderstandings. This will ensure that each party understands their respective roles and responsibilities in the business relationship. Option A, seeking joint venture partnerships, may not be necessary or feasible for every market. Option B, using countertrade as the method of payment, may not be practical or desirable for Mary's Mosaics. Option C, seeking permanent employment, may not be feasible or necessary for every market and may not allow for the flexibility needed for Mary's Mosaics' operations.