A U.S. cosmetics manufacturer would like to sell products Japan, India, and South Korea and is considering using an export agent instead of trading directly. One advantage of this arrangement is that the company would not have to deal withMultiple Choiceforeign currencies.a middleman.rising labor prices.the procurement of resources.

In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer’s goods in the overseas market and will receive a:Group of answer choicessalary as a direct employee of the producer.commission on the sale after taking ownership of the goods.monthly or annual retainer without taking ownership of the goods.monthly or annual retainer and take ownership of the goods.commission on the sale without taking ownership of the goods.

With indirect exporting, the firm itself contacts the potential consumers overseas and either sells direct to the end user in the target market, or appoints an overseas agent to act as a distributor for their products in that market.Group of answer choicesTrueFalse

Exporting is often all a company needs to internationalise when… Group of answer choices Production costs fall with scale and foreign markets require little or no product adaptation. The ratio of per-unit production cost to transport cost is low. Trade barriers are high and products are not easily transported. Different markets require significant product adaptation.

A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging materials to other cosmetics manufacturing companies. In addition, that same cosmetics manufacturer may sell to a retailer that buys similar cosmetics from a number of other manufacturers. This scenario illustratesMultiple Choicelogistics.distribution management.a supply chain.distribution center.a value chain.

A product is produced in a monopolistically competitive industry with scale economies. If thisindustry exists in two countries, and these two countries engage in trade with each other, then wewould expectA) the country with a relative abundance of the factor of production in which production of theproduct is intensive will export this product.B) the countries will trade only with other nations they are not in competition with.C) the country in which the price of the product is lower will export the product.D) neither country will export this product since there is no comparative advantage.E) each country will export different varieties of the product to the other.