Nantucket Food Products desires to expand internationally.Director of Sales,Esme Jones,prefers that the company export to foreign markets.Which of the following rationales should Jones use as an advantage of choosing exporting as a mode of entry into foreign markets?

Question

Quizplus · Accepted Answer

Exporting allows a firm to avoid the cost of establishing manufacturing operations in the host country, which can be a significant advantage as it reduces the financial risk and commitment required. This is particularly beneficial for companies that are new to international business or lack the resources to set up production facilities abroad. Sharing development costs, earning returns from process technology skills, accessing local knowledge or engaging in global strategic coordination are advantages of other modes of entry like joint ventures, licensing, franchising or direct investment.

Nantucket Food Products Desires to Expand Internationally