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

---

Definitions:

Australian Accounting Standards

Financial reporting regulations in Australia designed to ensure transparency and consistency across financial documents.

Management Accounting Information

Financial data and reports that are used by internal management for decision-making, planning, and control purposes.

Internal Management

Refers to the administrative practices, policies, and procedures implemented within a company to ensure its smooth operation and achievement of goals.

Institutional Theory

A theory that examines the extent to which companies can become successful by conforming to the norms and rules of their environmental context.