Which of the Following Is a Distinct Advantage of Exporting

question 27

Multiple Choice

Which of the following is a distinct advantage of exporting?

• A) It avoids the threat of tariff barriers by the host-country government.
• B) Firms benefit from a local partner's knowledge of the host country's competitive conditions.
• C) It avoids the often substantial costs of establishing manufacturing operations in the host country.
• D) It is appropriate if lower cost locations for manufacturing the product can be found abroad.

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Definitions:

Interest Rate

The percentage of a loan amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Miller-Orr Model

A financial model used for managing cash flows and cash reserves, focusing on maintaining balances within certain limits at minimum cost.

Upper Limit

The maximum value or level that is allowed or attainable in a given situation.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves within which no financing is needed.