Which of the Following Is NOT an Advantage to Exporting

question 34

Multiple Choice

Which of the following is NOT an advantage to exporting goods to reach international markets rather than entering into some form of FDI?

• A) fewer political risks
• B) greater agency costs
• C) lower front-end investment
• D) All of the above are advantages.

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Definitions:

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.

Premium Pricing

A strategy where goods or services are priced higher than the market average to create a perceived value of higher quality or exclusivity.

Odd Pricing

A pricing strategy that involves setting prices just below round numbers (e.g., $9.99 instead of $10) to make products appear cheaper to consumers.