One of the drawbacks to exporting arises when a firm delegates its marketing,sales,and service in each country where it does business to another company,leading to the risk of:
A)high manufacturing costs.
B)divided loyalties.
C)volatility in exchange rates.
D)regulatory restraints against the practice.

Question

Quizplus · Accepted Answer

One drawback to exporting arises when a firm delegates its marketing,sales,and service in each country where it does business to another company-a local agent or another multinational company.Such a company may often carry the products of competing firms and may have divided loyalties.In such cases,the local agent may not do as good a job as the firm would if it managed its marketing itself.

One of the Drawbacks to Exporting Arises When a Firm