More intense contact between an export manufacturer and its distributor in a foreign market will likely result in
A)a change in channel captain.
B)better performance by the distributor.
C)higher margins to the exporter.
D)higher margins to the importers.

Question

Quizplus · Accepted Answer

Intense contact between an export manufacturer and its distributor in a foreign market will likely result in better performance by the distributor. This is because increased communication and collaboration between the two parties can lead to more efficient and effective distribution, marketing, and sales strategies. It can also help the distributor better understand the manufacturer's products and target market, allowing them to tailor their approach accordingly. While this may lead to higher margins for both parties in the long run, it is not a guaranteed outcome and not directly related to the intensity of the contact. The choice of channel captain is typically determined by the structure and dynamics of the distribution channel, and is not directly influenced by the level of contact between the manufacturer and distributor. Similarly, the impact on margins may vary depending on factors such as pricing, competition, and exchange rates, and cannot be assumed based solely on the level of contact.

More Intense Contact Between an Export Manufacturer and Its Distributor