Which of the Following Is NOT a Disadvantage Associated with Exporting

question 39

Multiple Choice

Which of the following is NOT a disadvantage associated with exporting?

• A) High costs associated with acquiring foreign production facilities
• B) High transportation costs
• C) Loss of control over distribution activities
• D) Tariffs imposed by local governments

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Definitions:

Tires

Rubber-based components that fit around the rims of wheels to provide vehicles with traction, support, and a cushion from the impact of the road.

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

International Trade

The exchange of goods, services, and capital across international borders, driven by comparative advantages and benefiting parties through increased choice and efficiency.