What Is an Advantage of Exporting as a Global Expansion

question 111

Multiple Choice

What is an advantage of exporting as a global expansion entry mode?

• A)It is consistent with a pure global strategy.
• B)Low-cost sites are available.
• C)Transportation costs are generally lower.
• D)It is considered responsive to local needs.
• E)Trade barriers may be removed.

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Definitions:

Common Stock

A type of security that signifies ownership in a corporation, entitling the holder to a share of the company's assets and profits.

Pre-Tax Cost of Debt

The interest rate a company pays on its borrowings before taking into account any tax deductions.

Zero-Coupon Bonds

Zero-coupon bonds are debt securities that are issued at a discount to their face value and don’t pay interest before maturity; instead, investors receive the face value at maturity.

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount due at maturity.