Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Question

Quizplus · Accepted Answer

Exporting can be a way to test the market and generate revenue before investing in foreign production facilities. Once a company has established demand for its products in a foreign market, it may choose to set up production facilities there to reduce transportation costs and better serve local customers. Therefore, exporting is often a transitional stage toward establishing foreign production.

Exporting Is Often Not an End in Itself,but Merely a Step