Your Turn Question Essay

1048 WordsFeb 11, 20155 Pages
YOUR TURN QUESTIONS PG.160 1. Explain two functions of a wholesaler. (4) * Breaking bulk: taking huge quantities of a range of products from producers and breaking them down into smaller quantities to allow retailers to buy them and store them effectively in their outlets. Wholesalers are particular important to smaller retailers, which may only be able to stock a smaller number of product ranges. * Retailers are constrained by space and the need to use as much of this space as possible in the selling function. A retailer that has good links with wholesalers tends to operate in an effective way by maximising sales floor space and encouraging wholesalers to store more of the goods. 2. Discuss why a firm attempting to export furniture to Romania would be likely to use an agent. (8) * A firm attempting to export furniture to Romania would be likely to use an agent because agent can provide a link between the sellers and buyers, Agents are often used when firms are interested in selling goods aboard, in this case, export furniture to Romania. Since the UK and Romania has a different culture and speaks different language, therefore the agent is able to offer advice in a variety if areas such as the price range that Romanian aww more likely to afford, the type of style of the furniture as well as what shops should they sell their furniture to in order to gain the most profits. Also, there will be no communication problems in terms of language. The agent will act as a translator to help both the buyers and sellers to communicate to get the best deal. Furthermore, it provides expertise in import and export legislation which the UK firm may not be familiar with, so it will take much less time to read through, making the whole export process much easier and quicker. 3. Explain why a firm selling soft drink is more likely to offer

More about Your Turn Question Essay

Open Document