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A disadvantage when using home-country middlemen as intermediaries in the distribution process is the:

1) large financial investment required.
2) limited control over the distribution process.
3) large managerial investments required.
4) limited number of retailers in the foreign country who can be reached.
5) large amount of commission.

User Smilediver
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1 Answer

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Final answer:

Limited control over the distribution process is a key disadvantage of using home-country middlemen in international trade, potentially affecting market responsiveness and brand representation.

Step-by-step explanation:

A disadvantage of using home-country middlemen as intermediaries in the international trade distribution process is 2) limited control over the distribution process. This issue arises because the middleman, operating from the home country, may not have the same level of influence or direct engagement in the foreign market as compared to handling distribution through local agents or subsidiaries.

Home-country middlemen typically are more detached from the foreign market environment, which may result in less control over factors such as marketing strategies, pricing, and customer service quality in the target country. This detachment can impact a company's ability to respond quickly to market changes or to ensure the brand is represented as intended, potentially hindering the firm's competitive edge and limiting its ability to address consumer needs effectively.

User Hellatan
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