Question

A major trade-off when using home-country middlemen is:

A. the large financial investment required.
B. the limited control over the entire distribution process.
C. the large managerial investments required.
D. the limited number of retailers in the foreign country who can be reached through the home-country middlemen.
E. the large amount of commission charged by the home-country middlemen.

Answer 1

The major trade-off when using home-country middlemen is the limited control over the entire distribution process.

Step-by-step explanation:

The question is addressing the trade-offs when a company chooses to use home-country middlemen in its international distribution process. The major trade-off when using home-country middlemen is B. the limited control over the entire distribution process. Utilizing home-country intermediaries typically means the exporting firm has less direct oversight and influence on the marketing and sale of its products in the target foreign market. This can lead to issues such as the dilution of brand messaging, inconsistencies in customer experience, and potential misalignments with the company's overall international strategy.