Which of the Following Is the Primary Advantage of Exporting

question 72

Multiple Choice

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

• A) Provides a firm total control over its foreign operations
• B) Ability to generate revenue
• C) Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
• D) The exporting company's customers put up most of the capital needed to establish the export operation.
• E) Exporting involves very little effort on the part of a firm.

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Definitions:

Closed Economy

An economic system that does not engage in international trade with other countries and relies solely on its own resources and internal market.

Budget Surplus

The condition where a government's revenues exceed its expenditures over a specific period of time.

Public Saving

The difference between government receipts and government spending, representing the amount the government either saves or borrows.

Positive

In economics, referring to statements or analyses that are fact-based and describe the world as it is, rather than how it should be.