Which of the following are reasons that many firms engage in exporting?
A)Exports can allow the firm to serve markets where it has no or limited production facilities.
B)Exports can offset cyclical sales in the firm's domestic market.
C)Exports eliminate the risk of losing the firm's technology to potential competitors.
D)Exports always ensure that the licensee receives expertise from their own in-house experts.
E)Exports can allow the firm to serve markets where it has no or limited production facilities and can offset cyclical sales in the firm's domestic market.

Question

Quizplus · Accepted Answer

Both A and B are valid reasons for firms to engage in exporting. C is not necessarily true as exporting can still pose risks of technology leakage. D is not relevant to the question of exporting. Therefore, the best choice is E as it includes both A and B.

Which of the Following Are Reasons That Many Firms Engage