Which of the following is an advantage of exporting as a mode of entry into foreign markets?
A) It helps a firm achieve experience curve and location economies.
B) A firm does not have to bear the development costs and risks associated with opening a foreign market.
C) A firm has the ability to engage in global strategic coordination.
D) It helps the firm earn returns from process technology skills in countries where FDI is restricted.
E) It can provide the firm access to the local partner's knowledge.

Question

Quizplus · Accepted Answer

Exporting allows a firm to achieve experience curve and location economies by concentrating production in a centralized location and exporting to various markets, thus benefiting from economies of scale and learning effects.

Which of the Following Is an Advantage of Exporting as a Mode