Most Companies Become Involved in Direct Exporting When

question 178

Multiple Choice

Most companies become involved in direct exporting when

• A)foreign governments believe that they will benefit the most from allowing the entry of direct exports.
• B)emerging markets in foreign countries become economically viable.
• C)they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries.
• D)the domestic market becomes saturated with competing products and services.
• E)evolving technologies in foreign countries come online.

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Definitions:

Tangible Resources

Physical and material assets owned by a business, such as buildings, machinery, and inventory.

Intangible Resources

Non-physical assets owned by a business, such as intellectual property, brand reputation, and customer relationships.

Substitutable Resources

Resources in a firm that can be replaced by other resources to perform the same function, affecting competitive advantage and strategic planning.

Value Chain

A series of activities performed by a company to deliver a valuable product or service to the market.