One of Derrido's sales executives suggests that Derrido's particular type of business enables a contractual relationship to be an especially suitable way for the company to market its products internationally. Which of the following, if True, would strengthen this position?
A) Contractual relationships allow an originating firm to make the most use of local talent.
B) Contractual relationships cannot capture unpredictable future contingencies.
C) Contractual relationships are often cross-culturally contentious.
D) Derrido would not be undertaking large-scale production or shipping operations.
E) Derrido is a large company with ample staff and resources at its disposal.

Question

Quizplus · Accepted Answer

D) Unlike producers of consumer products, Derrido would not be shipping large amounts of products overseas, but rather licensing intellectual property for marketing by other companies overseas. Choice A does not describe a situation that would be particularly advantageous to Derrido, since the company would rely mostly on its existing talent and production. The potential for uncertainty (Choice B) and infighting (Choice C) are factors that would weaken the case for the company entering into a contractual relationship with a foreign company. Choice E might strengthen the case that the company could handle international marketing of its products by itself instead of entering into a contractual relationship.

One of Derrido's Sales Executives Suggests That Derrido's Particular Type