Which of the Following Is the Primary Advantage of Exporting

question 72

Multiple Choice

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

• A) Provides a firm total control over its foreign operations
• B) Ability to generate revenue
• C) Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
• D) The exporting company's customers put up most of the capital needed to establish the export operation.
• E) Exporting involves very little effort on the part of a firm.

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Definitions:

Mark-up

Added value to the purchasing price of merchandise to include overhead and profit.

Unsold Products

Items or goods that have been manufactured or acquired for sale but have not yet been purchased by customers.

Selling Price

The actual amount a customer pays for a product or service.

Mark-up

A markup on the goods’ purchase cost to account for administrative expenses and profit.