Which of the Following Is a Disadvantage of Direct Exporting

question 18

Multiple Choice

Which of the following is a disadvantage of direct exporting?

• A) The profits of a business will be lower, and control over foreign sales is lost.
• B) The opportunity to tailor its offerings to the customer's evolving needs is lost.
• C) The owner may not be able to respond to customer communications as quickly as a local agent can.
• D) The owner does not know 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:

Laissez-faire

An economic philosophy of free-market capitalism that opposes government intervention.

Authoritarian

A leadership style characterized by strict control, lack of participative decision-making, and a top-down approach to directives and policies.

Democratic

Relating to or supporting democracy or its principles, where power is vested in the hands of the people, often through elected representatives.

Formal Position

An officially recognized or established role within an organization, typically accompanied by specific duties, responsibilities, and levels of authority.