Which of the Following Is Not a Risk of Exporting

question 28

Multiple Choice

Which of the following is not a risk of exporting?

• A) Tariff barriers
• B) Transportation costs
• C) Location diseconomies
• D) High manufacturing costs
• E) Delegation of marketing activities to a local agent

---

Definitions:

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior are valid for the purposes of cost estimation and budgeting.

Total Fixed Costs

The sum of all costs that do not change with the level of production or sales over a certain period.

Unit Fixed Costs

The fixed costs associated with producing a single unit of product, which remain constant regardless of the level of production or sales volume.

Period Cost

Costs that are not directly tied to the production of goods and are expensed in the period they are incurred, such as selling, general, and administrative expenses.