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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