Which of the Following Is NOT a Potential Disadvantage Associated

question 44

Multiple Choice

Which of the following is NOT a potential disadvantage associated with an import/export operation?

• A)Some products are restricted and cannot be imported or exported.
• B)Products may miss the needs of a large segment of the market because they are not adapted to local conditions.
• C)There is a great deal of risk involved compared to other strategic alternatives.
• D)Imports/exports are subject to taxes, tariffs, and higher transportation expenses.
• E)All of these choices

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Definitions:

Foreign Companies

Businesses that are incorporated or registered outside of a country’s borders and operate within that country.

U.S. Commerce

Refers to the economic activities and trade within the United States, including transactions of goods and services.

Interstate Commerce Act

A United States federal law designed to regulate the railroad industry, particularly its monopolistic practices, by requiring reasonable and just rates with the establishment of the Interstate Commerce Commission.

Passed

To have been approved or made official, particularly in the context of legislation or examinations.