Which of the Following Is a Disadvantage of Exporting as a Mode

question 58

Multiple Choice

Which of the following is a disadvantage of exporting as a mode for entering a foreign market?

• A)It increases the cost of selling in the foreign market.
• B)It does not work when the product adaptation required is minimal.
• C)It cannot work with distribution networks in the foreign market.
• D)It involves heavy investment in the foreign country.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.

Demand Curve

It graphically represents the relationship between the price of a good and the quantity demanded by consumers, typically depicting an inverse relationship.

Elastic

A term describing how much the quantity demanded or supplied of a good changes in response to a change in price; highly responsive quantities are considered elastic.

Pizzerias

Establishments that specialize in preparing and serving various types of pizzas to customers.