Which of the Following Is a Disadvantage of Exporting as a Mode

question 67

Multiple Choice

Which of the following is a disadvantage of exporting as a mode of entry into foreign markets?

• A) The firm incurs the costs of establishing manufacturing operations in the host country.
• B) The firm is unable to realize experience curve economies through exporting.
• C) The local agents may not market the firm's products as well as the firm would if it managed its marketing itself.
• D) The firm cannot use countertrading options when exporting.
• E) The firm may not realize substantial scale economies from its global sales volume via exporting.

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Net Loss

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Net Income

The remainder of a company's revenue after deducting all expenditures and taxes, known as net profit.

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