If an exporting firm wants to change from a strategy where it has used agents or distributors to a strategy based upon sales subsidiaries,it is usually easy and painless to make this switch.

Question

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Changing from a strategy based on agents or distributors to one based on sales subsidiaries involves setting up new entities, hiring staff, and making significant capital investments, which can be time-consuming and costly.

If an Exporting Firm Wants to Change from a Strategy