Final answer:
Local distributors will buy Jamal's products and resell them in their respective local markets, providing Jamal the opportunity to reduce his sales and logistics costs. This allows Jamal to leverage economies of scale and benefit from a competitive international marketplace.
Step-by-step explanation:
Jamal is looking to reduce his sales and logistics costs in international markets by utilizing local distributors. The role of these local distributors is crucial as they will buy his products and resell them on his behalf, acting as intermediaries between Jamal and the final customers. In light of the given options, the most accurate description of what these local distributors will do with Jamal’s products is option B: They will buy his products and resell them for his business. Local distributors handle the marketing, storing, selling, and sometimes the servicing of products in the local market.
Utilizing local distributors can enable Jamal to take advantage of economies of scale, even in a small economy. This is possible because international trade allows for higher production output to meet the demand from multiple markets, which can lower the average cost per unit through mass production. Additionally, Jamal's business would benefit from the competition and the variety offered by having several producers in the marketplace. This encourages efficiency, innovation, and the opportunity to cater to different customer preferences, which can lead to increased profitability and market share.