Local agents handling marketing,sales,and service of an exporter may have loyalties to several other companies and may not do as good a job as the firm would if it managed its marketing itself.The company can address this problem by:
A)setting up wholly owned subsidiaries in foreign nations to handle these functions.
B)changing agents frequently.
C)only engaging in turnkey projects.
D)entering into licensing agreements with entities in foreign nations.

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 so 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.

Local Agents Handling Marketing,sales,and Service of an Exporter May Have