A Disadvantage of Exporting Is That

question 38

Multiple Choice

A disadvantage of exporting is that

• A)it does not provide scale economies.
• B)the company may face tariff barriers.
• C)it is the most expensive method of expanding globally.
• D)the company risks losing control of its intellectual property.
• E)it is inconsistent with a pure global strategy.

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Definitions:

Auction Without Reserve

A type of auction in which the item for sale will be sold regardless of the bid amount, without any minimum price threshold.

Cash Register

A machine used in shops to calculate and record sales transactions and to store money.

Expressed Contract

A legally binding agreement where the terms are explicitly stated either orally or in writing.

Hula Hoop

A toy hoop that is twirled around the waist, limbs, or neck, primarily for exercise or entertainment.