Which of the Following Constitutes a Major Disadvantage for Exporting

question 24

Multiple Choice

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?

• A) inability to monitor currency exchange rates
• B) lack of control over pricing
• C) absence of brand loyalty among customers
• D) limited access to low-cost labor

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Definitions:

Short Run

A period in economics during which at least one input is fixed, limiting the ability of a firm to adjust its production levels.

Monopolistically Competitive

refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and promotional differentiation.

Fixed Costs

Costs that do not change in total amount with a change in business activity level, such as rent or salaries.

Short Run

The short run in economics is a period during which at least one input, like plant size, is fixed and cannot be changed.