Question

A U.S. manufacturer is willing to assume the trading risk in a foreign country but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information. What type of middleman should the company choose?

Answer 1

Answer:

Agent middlemen

Explanation:

An agent middleman (or middlewoman) works in a commission basis and is responsible for arranging contracts (but not signing them) and sales agreements in the foreign country. He/she must follow the company's guidelines and policies including prices. They are also responsible for keeping all sales records and customer information.

Answer 2

Answer:

Agent middlemen

Explanation:

The company should choose an agent middlemen because they work on commission and make arrangement for sales in the foreign country but do not take title to the merchandise. By using agents, the manufacturer assumes trading risk but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information