BUSN101 EXAM-CHAPTERS 3-4.docx - BUSN101/Introduction to Business Exam-Chapters 3 4 Yus miel Garcia Essay Questions 1 Why would a company choose to work

BUSN101 EXAM-CHAPTERS 3-4.docx - BUSN101/Introduction to...

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BUSN101/Introduction to Business Exam-Chapters 3 & 4 Yus miel Garcia Essay Questions 1. Why would a company choose to work through intermediaries when selling products in a foreign country? It is basically a risk mitigation technique. Companies use local intermediaries as they are better aware about the know-how of the local market. It helps in avoiding the hassles involved in international distribution (tariffs, customs, etc.) they also do not have to develop their own distribution network. Through intermediaries they can target more markets rather than restrict their focus to a few geographies. In some countries due to protectionism issues, it is mandatory for a foreign player to enter the market only through an intermediary. Sometimes it is also use to have tax efficient infrastructure. 2. (3) What types of situations might cause the U.S. government to implement protectionist measures? A tariff is a tax that a governing authority imposes on goods or services entering or leaving the country. Tariffs typically focus on a specified industry or product, and are set in place in a controlled effort to alter the balance of trade between the tariff-imposing country and its international trading partners. For example, when a
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