Author Question: Which of the following is an advantage of exporting? (Read 47 times)

LCritchfi · **on:** Feb 15, 2021

Question 1

Which of the following is a major challenge often faced by focal firms that engage in global sourcing?
◦ no control over the quality of outputs
◦ domestic management of local distribution
◦ increased costs of business travel
◦ lower-than-expected cost savings

Question 2

Which of the following is an advantage of exporting?
◦ It allows focal firms to attain maximum control by establishing ownership of key assets in the foreign market.
◦ It is a high-control strategy that requires substantial resource commitment when compared to equity joint ventures.
◦ It minimizes exposure to tariffs and other trade barriers, as well as fluctuations in exchange rates.
◦ It increases overall sales volume, improves market share, and reduces per-unit costs of manufacturing and can potentially generate profit margins that are often more favorable than in the domestic market.

taylorsonier · **Reply #1 on:** Feb 15, 2021

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