As a company grows in exporting sophistication,it should not become involved with an export trading company because
A) fixed costs are too high.
B) variable costs are too high.
C) it is a violation of international law.
D) customers abroad are customers of the export trading company, not the exporter.
E) None of the above

Question

Quizplus · Accepted Answer

Fixed and variable costs are not relevant to the exporter since the export trading company takes title to the product.The reference to international law is incorrect.An export trading company can help the novice exporter,but as an exporter becomes more experienced and sophisticated it should want the direct contact with foreign customers it does not have through an export trading company.

As a Company Grows in Exporting Sophistication,it Should Not Become