Which of the Following Is True of Exporting

question 91

Multiple Choice

Which of the following is true of exporting?

• A) It is the least common strategic approach for a company making its first foray into the international marketplace.
• B) It includes the cost of establishing manufacturing operations in the host country.
• C) It does not need to pay import duties or face trade barriers.
• D) It helps a firm achieve experience-curve and location economies.

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Definitions:

EOQ Model

Economic Order Quantity Model, an inventory management formula that determines the optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components or finished goods held in stock.

Inventory Carrying Charge

The total cost associated with holding inventory in stock, including storage, insurance, taxes, depreciation, and opportunity costs.

Order Quantity

The number of units ordered at once from a supplier, balancing between holding costs and ordering costs to achieve optimal inventory levels.