In a short essay, describe three disadvantages firms face when ...

[mpobi80]

In a short essay, describe three disadvantages firms face when internationalizing through exporting.
 
  What will be an ideal response?

Question 2

Which of the following is the most likely benefit of a network structure?
 
  A) encouraging competition among members for resources
  B) facilitating supplier changes anywhere in the value chain
  C) developing core competencies in a broad range of value activities
  D) maintaining a strong sense of organization in the face of dynamic partnerships

[TheDev123]

Answer to Question 1

a. Management has fewer opportunities to learn about customers, competitors, and other unique aspects of the market because exporting does not require the firm to have a physical presence in the foreign market. A lack of direct contact with foreign customers means that the exporter may fail to perceive opportunities and threats, or may not acquire the knowledge that it needs to succeed in the market in the long term.
b. Exporting usually requires the firm to acquire new capabilities and dedicate organizational resources to properly conduct export transactions. Firms that are serious about exporting must hire personnel with competency in international transactions and foreign languages. Exporting requires management to expend the time and effort to learn about freight forwarders, documentation, foreign currencies, and new financing methods. The acquisition of such capabilities puts a strain on company resources.
c. Exporting is much more sensitive to tariff and other trade barriers, as well as fluctuations in exchange rates. Exporters run the risk of being priced out of foreign markets if shifting exchange rates make the exported product too costly to foreign buyers.

Answer to Question 2

D

[mpobi80]

Correct answers!

[TheDev123]

Great! Please up vote