The Three Basic Methods of Market Entry to Overseas Markets

question 15

Multiple Choice

The three basic methods of market entry to overseas markets are:

• A) local-based, export-based and manufacturing-based.
• B) export-based, franchise-based and manufacturing-based.
• C) export-based, manufacturing-based and relationship-based.
• D) indirect-based, direct-based and agent-based.
• E) local-based, international-based and global-based.

---

Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.

Marginal Cost

This represents the extra expense of manufacturing or producing an additional item, highlighting the concept of decreasing efficiency with increased production volume.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.

Average Total Cost

The total cost divided by the quantity produced, indicating the average cost per unit of output.