Exporting to an unfamiliar foreign market is beneficial to a pioneer because:
A)the entry barriers are high in exporting.
B)it gives high degree of control.
C)it lowers the financial risk involved.
D)it makes marketing and distribution easier.

Question

Quizplus · Accepted Answer

Exporting to an unfamiliar foreign market can lower the financial risk involved for a pioneer because it allows the company to enter the market without the need for a significant investment in local operations, such as building a manufacturing facility or setting up a physical presence. This approach can be less financially risky compared to other entry modes that require more substantial upfront investments.

Exporting to an Unfamiliar Foreign Market Is Beneficial to a Pioneer