Which of the Following Is NOT an Advantage to Exporting

question 43

Multiple Choice

Which of the following is NOT an advantage to exporting goods to reach international markets rather than entering into some form of FDI?

• A)Fewer political risks.
• B)Greater agency costs.
• C)Lower front-end investment.
• D)All of the above are advantages.

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Definitions:

Build-up Method

A financial analysis tool used to estimate the value of a business by adding together its individual components' values.

Market Segmentation

The practice of dividing a broad target market into smaller groups with similar needs or characteristics to target each group more effectively.

Regression Analysis

A forecasting method that predicts future sales by finding a relationship between sales and one or more variables.

Historical Sales Data

Records of past sales activities used to analyze trends, performance, and business growth strategies.