Juggernaut,Inc.makes large-size commercial appliances such as freezers and refrigerators.These items are bulky and the firms incur high transportation costs to distribute its products.Juggernaut,Inc.wants to enter foreign markets via exports.How can Juggernaut,Inc.avoid incurring high transport costs when exporting its bulk products?
A)taking a minority equity interest
B)entering into a turnkey project with a foreign firm
C)manufacturing bulk products regionally
D)setting up subsidiaries irrespective of market reach
E)reducing the quantity of the product offering

Question

Quizplus · Accepted Answer

By manufacturing bulk products regionally, Juggernaut, Inc. can avoid high transportation costs when exporting its products. This would involve setting up manufacturing facilities in regions where demand is high, thus reducing the need for transportation over long distances. This would also help in minimizing the risk of damage to the products during transportation. The other options (A, B, D, E) do not directly address the issue of transportation costs.