Which of the following is a disadvantage of exporting as a mode of entry into foreign markets?
A) The exporting firm incurs the costs of establishing manufacturing operations in the host country.
B) The firm is unable to realize curve economies through exporting.
C) High transport costs can make exporting uneconomical, particularly for bulk products.
D) The firm cannot use countertrading options when exporting.
E) A firm may not realize substantial scale economies from its global sales volume via exporting.

Question

Quizplus · Accepted Answer

High transport costs can make exporting uneconomical, particularly for bulk products. This can make the exporting firm less competitive in the foreign market, leading to decreased profitability.

Which of the Following Is a Disadvantage of Exporting as a Mode