Explanation should include a definition of logistics and intermediary and should delineate how the costs related to logistics (specifically packaging, shipping and various intermediaries involved in global distribution) impact selling price.
Explanation should incorporate all the terms of sale, including
- means by which product is shipped
- party responsible for payment of shipping fees
- insurance.
Process/Skill Questions:
- What are the major global intermediaries?
- What are major considerations for packing an item for international shipping?
- What services are usually provided by wholesalers in a global market?
- What is a total cost concept and why is it necessary when developing distribution systems?
- What is the difference between a short channel of distribution and a long channel of distribution?