Which of the Following Is a Drawback of Direct Exporting

question 9

Multiple Choice

Which of the following is a drawback of direct exporting?

• A) Servicing the business will demand more responsibility from every level in the organization.
• B) The profits of a business will be lower, and control over foreign sales is lost.
• C) The opportunity to tailor its offerings to the customer's evolving needs is lost.
• D) The owner knows whom to contact if something is not working.
• E) The long-term outlook and goals for an export program can change rapidly, and it is hard to redirect efforts accordingly.

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Definitions:

Investment

The action or process of investing money for profit or material result, often involving risk.

Original Principal

The initial amount of money loaned or invested, before any interest or profits are added.

Missing Value

A data point or an element in a statistical or mathematical model that is not observed or recorded.

Compounded Annually

The annual computation of interest that adds together the original investment and the previously earned interest.