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Cost of Transportation and Distribution

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When considering channels of distribution based on geographical location of the consumer, do you believe that at a certain point a good can become unmarketable because of the cost of distribution to a foreign location?

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Solution Summary

This detailed solution considers channels of distribution based on geographical location of the consumer and whether at some point a good can become unmarketable due to the cost of distribution to a foreign location.

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You are absolutely correct in your assumption. In order to determine the point at which the cost of distribution becomes too high a company must figure out product costs, labor, packaging, transportation costs, custom fees, transportation to customer ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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