An advantage of choosing exporting as a mode of entry into foreign markets is that a firm
A)can avoid the cost of establishing manufacturing operations in the host country.
B)shares the development costs and risks with its host partner.
C)can earn returns from process technology skills in countries where FDI is restricted.
D)has access to local partner's knowledge.
E)has the ability to engage in global strategic coordination.

Question

Quizplus · Accepted Answer

By choosing exporting, a firm can avoid the cost and risk of establishing manufacturing operations in the host country. This is particularly advantageous when first entering a foreign market or when dealing with countries where FDI is restricted. However, exporting may not provide full access to local knowledge or the ability to engage in global strategic coordination.

An Advantage of Choosing Exporting as a Mode of Entry