Which of the following is true about exporting goods?
A) Exporting is not a popular entry strategy because of its high risks and capital requirements.
B) Exporting requires establishing operations in the country and a large capital investment.
C) An export strategy most likely provides big returns because of shared costs with local firms.
D) An exporting firm must establish a means of marketing and distributing its goods within the country.

Question

Quizplus · Accepted Answer

An exporting firm must establish a means of marketing and distributing its goods within the country. This is necessary to reach the target market and maintain a competitive advantage. Option A is incorrect as exporting is a popular entry strategy for many firms, especially small and medium-sized businesses. Option B is incorrect as exporting does not necessarily require establishing operations in the country or a large capital investment. Option C is also incorrect as shared costs with local firms do not necessarily lead to big returns in an export strategy.

Which of the Following Is True About Exporting Goods