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.

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Definitions:

Double-Digit Inflation

A period of economic condition where the rate of inflation reaches or exceeds 10%, significantly eroding purchasing power.

Unemployment Rate

The ratio of the labor force characterized by lack of employment but ongoing job search efforts.

Great Depression

A severe worldwide economic downturn in the 1930s, marked by mass unemployment, deflation, and a significant decline in economic activity.

1970s

The 1970s is a decade known for significant economic, political, and cultural shifts, including the energy crisis, inflation, and changes in global politics.