Which of the Following Is True of Exporting

question 79

Multiple Choice

Which of the following is true of exporting?

• A) It avoids the often substantial costs of establishing manufacturing operations in the host country.
• B) It is the best choice if lower-cost manufacturing locations are available abroad.
• C) Low transportation costs may make exporting uneconomical.
• D) Tariff barriers may make exporting the most attractive option.

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Definitions:

Rule of Reason

A legal doctrine used in antitrust law that evaluates business practices based on their overall circumstances and their impact on competition, rather than deeming them inherently illegal.

Supreme Court

The highest judicial court in a country or state, often having the final word in legal disputes and constitutional issues.

Oil And Tobacco Trusts

Historical terms referring to the monopolistic organizations formed in the oil and tobacco industries to control production and prices.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage more efficient and competitive markets.