When Nonexporting Firms Are Asked Why They Do Not Export

question 69

Multiple Choice

When nonexporting firms are asked why they do not export, they generally list the following as problems:

• A) locating foreign markets.
• B) payment and finance procedures.
• C) As stated directly in the text.
• D) lack of foreign language expertise.
• E) A, B, and C.

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Definitions:

Absolute Value

A mathematical function that describes the distance of a number on the number line from zero, disregarding its direction; always a non-negative value.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply, minimizing the bias in calculation by taking the average of the initial and final quantities and prices.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price, indicating how sensitive consumers are to price changes.

Elastic Section

Part of a demand curve where a small change in price leads to a relatively large change in quantity demanded, indicating high price sensitivity.