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Author Question: Which of the following is an advantage of exporting? (Read 81 times)

LCritchfi

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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.
International Business: The New Realities, Global Edition ¦ Cavusgil, Knight, Riesenberger ¦ 5th Edition
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Marked as best answer by LCritchfi on Feb 15, 2021

taylorsonier

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Reply #1 on: Feb 15, 2021
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LCritchfi

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Reply 2 on: Feb 15, 2021
:D TYSM

milbourne11

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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