Advantages of Exporting as a Global Expansion Entry Mode Are

question 122

Multiple Choice

Advantages of exporting as a global expansion entry mode are that

• A)economies of scale may be realized.
• B)the target site may have lower production costs.
• C)transportation costs are generally lower.
• D)it is considered responsive to local needs.
• E)trade barriers may be removed.

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Definitions:

Direct Labor Costs

Compensation and perks given to workers directly engaged in creating products or services.

Fixed Overhead

Regular, unchanged costs associated with operating a business, such as rent and salaries, irrespective of production levels.

Work in Process

Goods that are in various stages of completion in the manufacturing process but are not yet finished products.

Direct Labor Variances

The differences between the actual labor costs incurred and the standard labor costs for the actual production achieved.