is due in part to its
a. company strategy, structure, and rivalry.
b. absence of competition.
c. related and supporting industries.
d. factor conditions.
e. demand conditions.
Answer:
The fashion buyer for Neiman Marcus is in Italy to view the new collections and to
order for the coming season. In Milan, she negotiates a good price for a quantity of
shoes in a range of sizes and styles, FOB factory. This means that
a. the factory selects the mode of transportation, pays the freight charges, and is
responsible for any damage because the seller retains title to the goods until they are
delivered to Neiman Marcus.
b. the factory selects the mode of transportation but Neiman Marcus pays freight
charges and is responsible for any damage while the shoes are in transit because title
passes to the firm at the point of loading.
c. Neiman Marcus and the factory split the freight costs.
d. the factory pays the freight cost to a designated port (airport or seaport) in the U.S.
while Neiman Marcus pays the freight from that port to its final destination within the
U.S.
e. the factory passes the title when the goods are loaded but will pay all shipping costs.