Which of the Following Is an Advantage to Exporting Goods

question 53

Multiple Choice

Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of FDI?

• A)Fewer agency costs.
• B)Fewer direct advantages from research and development.
• C)A greater risk of losing markets to copycat goods producers.
• D)An inability to exploit R&D as effectively as if also invested abroad.

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Definitions:

Online Auction

A digital platform where goods or services are sold through bidding, allowing users to submit competitive bids until the auction time expires.

Independent E-marketplaces

Online platforms that connect buyers and sellers from various industries, allowing them to conduct transactions without traditional intermediaries.

Neutral Third Party

An independent entity that is not involved in the interests of any of the parties involved in a negotiation or conflict, providing impartial assistance.

Independent E-marketplaces

Online platforms that facilitate transactions between buyers and sellers from various industries without being managed by a single company or industry consortium.