Which of the Following Is a Potential Disadvantage Associated with an Import/export

question 67

Multiple Choice

Which of the following is a potential disadvantage associated with an import/export operation?

• A) Products are unrestricted;anything can be imported or exported.
• B) Importing and exporting requires a large cash outlay from organizations.
• C) There is a great deal of risk involved compared to other strategic alternatives.
• D) Imports/exports are subject to taxes,tariffs,and higher transportation expenses.
• E) All of these choices

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Definitions:

Corn Crop

The cultivation of corn (maize) plants for use as food, feed, biofuel, and raw materials in agriculture and industry.

Tortilla Chips

Crispy snack food made from corn tortillas cut into triangles and then fried or baked.

Fungus

A group of eukaryotic organisms, which include yeasts, molds, and mushrooms, that live by decomposing and absorbing the organic material in which they grow.

Input Costs

The expenses incurred to purchase the raw materials, labor, and other resources needed to produce goods or services.