Which of the following is the primary advantage of exporting as a foreign market entry strategy?
A) Provides a firm total control over its foreign operations
B) Ability to generate revenue
C) Exporting is a relatively inexpensive way for a firm to become involved in foreign markets.
D) The exporting company's customers put up most of the capital needed to establish the export operation.
E) Exporting involves very little effort on the part of a firm.

Question

Quizplus · Accepted Answer

Exporting is a relatively inexpensive way for a firm to become involved in foreign markets. This is because the company does not need to make significant investments in infrastructure, operations, or hiring local staff in the foreign market. Instead, the company can rely on its existing production facilities and distribution channels to sell its products or services in foreign markets. This makes exporting an attractive market entry strategy for small and medium-sized firms that lack the resources to invest in foreign operations.

Which of the Following Is the Primary Advantage of Exporting