Question

Which of the following statements is true regarding agent middlemen?

1) They take title to the merchandise.
2) They work on commission and arrange for sales in the foreign country.
3) Manufacturers cannot control them as much as they control merchant middlemen.
4) They do not represent the best interests of the manufacturer.
5) They assume trading risks.

Answer 1

Agent middlemen work on commission and arrange for sales in the foreign country.

Step-by-step explanation:

The correct statement regarding agent middlemen is:

1. They work on commission and arrange for sales in the foreign country.

Agent middlemen do not take title to the merchandise, unlike merchant middlemen who assume ownership. Agent middlemen act as intermediaries between the manufacturers and foreign buyers, working on commission and facilitating sales in the foreign country. Manufacturers have more control over agent middlemen compared to merchant middlemen since agent middlemen represent the interests of the manufacturer. Additionally, while merchant middlemen assume trading risks, agent middlemen do not.