Answer to Question 1
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Answer to Question 2
a. A focal firm is the initiator of an international business transaction that conceives, designs, and produces the offerings intended for consumption by customers worldwide. Focal firms take the center stage in international business. They include large multinational enterprises (MNEs; also known as Multinational Corporations or MNCs) and small and medium-sized enterprises (SMEs).
b. A distribution channel intermediary is a specialist firm that provides a variety of logistics and marketing services for focal firms as part of the international supply chain, both in the home country and abroad. Intermediaries such as distributors and manufacturer's representatives are typically located in foreign markets.
c. A facilitator is a firm or an individual, with special expertise in legal advice, banking, customs clearance, or related support services. The facilitator assists focal firms with international business transactions. Facilitators include logistics service providers, freight forwarders, banks, and other support firms that assist focal firms in performing specific functions.
International business transactions require that focal firms, distributions channel intermediaries, and facilitators work closely together. The focal firm performs certain activities internally and delegates other functions to intermediaries and facilitators where their special expertise is needed. In other words, the focal firm becomes a client of intermediaries and facilitators who provide services on a contractual basis.
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