Which of the Following Is Most Likely a Disadvantage to Firms

question 73

Multiple Choice

Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?

• A)high cost of foreign market entry
• B)difficulties withdrawing from foreign markets
• C)high risk of low sales due to fluctuations in exchange rates
• D)high risk due to uncertainty in the political environment of the foreign market

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Definitions:

Maximize Profits

The process of determining the best price and output level that leads to the highest possible profit for a business.

Senior Citizens

Individuals who have reached a certain age, often associated with retirement and receiving certain benefits due to their age.

Income Elasticity

A measure of how the quantity demanded of a good changes in response to a change in consumers' income.

BMW

A German multinational company that produces luxury vehicles and motorcycles.