Which of the Following Is a Disadvantage of Exporting as a Mode

question 58

Multiple Choice

Which of the following is a disadvantage of exporting as a mode for entering a foreign market?

• A)It increases the cost of selling in the foreign market.
• B)It does not work when the product adaptation required is minimal.
• C)It cannot work with distribution networks in the foreign market.
• D)It involves heavy investment in the foreign country.

Realize the significance of external market factors, such as product market constraints, on pay decisions.

Understand the principles of equity theory and its application in organizational pay systems.

Comprehend the strategic use of pay surveys in benchmarking and setting competitive compensation.

Analyze the challenges and criticisms of pay policies like minimum wage laws and comparable-worth policies.

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Definitions:

Short Run

A period of time in economics during which at least one input is fixed and cannot be changed by businesses.

Average Total Cost

It is the total cost divided by the number of goods produced, encompassing both fixed and variable costs.

Monopolistic Competitor

A firm operating in a market structure characterized by many producers selling similar but not identical products, leading to some degree of market power and pricing authority.

Marginal Cost

The price of manufacturing an additional unit of a product or service.