Which of the Following Is an Advantage of Exporting

question 68

Multiple Choice

Which of the following is an advantage of exporting?

• A) It allows focal firms to attain maximum control by establishing ownership of key assets in the foreign market.
• B) It is a high-control strategy that requires substantial resource commitment when compared to equity joint ventures.
• C) It minimizes exposure to tariffs and other trade barriers, as well as fluctuations in exchange rates.
• D) It increases overall sales volume, improves market share, and reduces per-unit costs of manufacturing and can potentially generate profit margins that are often more favorable than in the domestic market.

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Definitions:

Decision Makers

Individuals or groups within an organization responsible for making choices that affect the company's direction, operations, and policies.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior, focusing on the morality of human actions.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Penalty

A punishment imposed for breaking a law, rule, or contract.