Which of the Following Is an Advantage of Choosing Exporting

question 53

Multiple Choice

Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets?

• A)A firm can avoid the cost of establishing manufacturing operations in the host country.
• B)A firm shares the development costs and risks with its host partner.
• C)A firm can earn returns from process technology skills in countries where FDI is restricted.
• D)A firm has access to local partner's knowledge.
• E)A firm has the ability to engage in global strategic coordination.

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Definitions:

Market Size

The total volume or value of all sales within a given market over a specific period of time.

Consumer Surplus

The gap between the total price consumers are willing to pay for a good or service and the price they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount they receive (market price).

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.