Selling large quantities of a product in a foreign market below cost is the best way for a small company to begin its export program.

Question

Quizplus · Accepted Answer

Selling below cost is not a sustainable strategy and can lead to financial loss for the company. It is important for small companies to compete on value and quality rather than just price to establish a foothold in a foreign market. Cost-cutting measures should be sought out in the manufacturing and supply chain processes without sacrificing quality to increase profitability.

Selling Large Quantities of a Product in a Foreign Market