Answer to Question 1
C
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Answer to Question 2
The following are among the reasons cited for a firm's nonparticipation in trade fairs:
1 . High costs - These can be avoided by participating in events sponsored by the U.S. Department of Commerce or exhibiting at U.S. trade centers or export development offices. An exporter can also lower costs by sharing expenses with distributors or representatives. Further, the costs of closing a sale through trade shows are estimated to be much lower than for a sale closed through personal representation.
2 . Difficulty in choosing the appropriate trade fairs for participation - This is a critical decision. Because of scarce resources, many firms rely on suggestions from their foreign distributors on which fairs to attend and what specifically to exhibit.
3 . For larger exporters with multiple divisions, the problem of coordination - Several divisions may be required to participate in the same fair under the company banner. Similarly, coordination is required with distributors and agents if joint participation is desired, which requires joint planning.
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