The Probability of Exporting Successfully Can Be Increased Dramatically by Utilising

question 29

Multiple Choice

The probability of exporting successfully can be increased dramatically by utilising all of the following steps,except:

• A)hire an EMC,or at least an export consultant,and initially focus on one market.
• B)enter the market on a small scale initially,and recognise the time and managerial commitments involved.
• C)devote a lot of attention to building relationships with distributors and hire local personnel.
• D)be proactive to business opportunities and reactive to market threats that may arise.

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Definitions:

External Economies of Scale

Cost advantages that a firm obtains due to the expansion of the industry in which it operates, but not due to its own expansion.

Industry Size

A measure of the total production or the total number of participants in a particular industry or market.

Short-Run Losses

Temporary financial deficits that a firm may face due to operating costs exceeding total revenue in the short term.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including both explicit and implicit costs.