Which of the Following Is a Distinct Advantage of Exporting

question 27

Multiple Choice

Which of the following is a distinct advantage of exporting?

• A) It avoids the threat of tariff barriers by the host-country government.
• B) Firms benefit from a local partner's knowledge of the host country's competitive conditions.
• C) It avoids the often substantial costs of establishing manufacturing operations in the host country.
• D) It is appropriate if lower cost locations for manufacturing the product can be found abroad.

---

Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, providing more accurate product costing.

Direct Labor

involves labor costs directly associated with the manufacturing of products, easily traceable to the end product.

Overhead Costs

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to the production of goods or services for more accurate cost management.