Which of the Following Is Not True of Exporting as a Market

question 39

Multiple Choice

Which of the following is not true of exporting as a market entry strategy?

• A) Exporting does not require the expense of establishing local operations
• B) Exporters do not need to establish some means of marketing and distributing their products at the local level
• C) Exporters incur high transportation costs
• D) Exporters may be adversely impacted by exchange rate fluctuations
• E) Exporters may be adversely impacted by tariffs placed on imports into the local country

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Definitions:

Open Systems

A term referring to systems that interact with their environment, exchanging information, materials, or energy.

Value Chain

The sequence of activities carried out by organizations to create valued goods and services to consumers.

Open System Chain

A concept in systems theory referring to the interconnectedness and interaction between a system and its external environment, allowing for exchange of information, energy, and materials.

Production

refers to the process of creating goods and services through the combination of human labor, materials, and technology.