An Advantage of Exporting as a Global Expansion Entry Mode

question 51

Multiple Choice

An advantage of exporting as a global expansion entry mode is 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.

Appreciate the continuum of offerings between tangible products and intangible services.

Recognize the cost structures associated with service delivery, including inventory carrying costs.

Understand how services can be classified by various criteria including the level of tangible vs. intangible attributes, and the sector (public, private, nonprofit).

Understand the different debt instruments used by public corporations to finance their activities.

---

Definitions:

Concentric Zone Model

A social model that describes urban land use in concentric circles, with the central business district at the center.

Ecological Succession

In the theory of human ecology refers to the process by which a distinct urban group moves from one area to another and a second group comes in to replace the group that has moved out.

Middle Class

A social class typically composed of individuals who have a moderate level of income, education, and occupational prestige.

Urban Areas

Regions characterized by high population density and vast human features in comparison to areas surrounding it, often synonymous with cities or towns.