The viability of an exporting strategy is often constrained by transportation costs, particularly of products that can be produced in almost any location and have a:
A)high local content requirement.
B)low total landed cost.
C)low value-to-weight ratio.
D)low licensing tariff.
E)high marginal cost.

Question

Quizplus · Accepted Answer

The viability of an exporting strategy is often constrained by transportation costs. When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a low value-to-weight ratio and that can be produced in almost any location.

The Viability of an Exporting Strategy Is Often Constrained by Transportation