Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?
A)high cost of foreign market entry
B)difficulties withdrawing from foreign markets
C)high risk of low sales due to fluctuations in exchange rates
D)high risk due to uncertainty in the political environment of the foreign market

Question

Quizplus · Accepted Answer

Exporting exposes firms to fluctuations in exchange rates, which can lead to unpredictable sales revenues in foreign markets, and potentially lead to losses. This can be considered a major disadvantage for firms that rely on exporting as their primary entry strategy. The other options (A, B, and D) may also present challenges, but they are not necessarily unique to exporting as an entry strategy.

Which of the Following Is Most Likely a Disadvantage to Firms