Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

Question

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Exporting allows a company to sell products and services to a foreign market without having to establish a physical presence in that market. This can save the company the costs associated with setting up manufacturing or distribution operations in a foreign country. Additionally, exporting may help a company achieve experience curve and location economies by increasing production volumes and reducing costs through specialization and efficiency gains.

Exporting Is Advantageous Because It Avoids the Cost of Establishing