Question

Identify the limitation(s) of importing/ exporting form of international business.

• A. Exporting/importing involves additional packaging, transportation and insurance costs.
• B. Exporting is not a feasible option when import restrictions exist in a foreign country.
• C. Export firms basically operate from their home country.
• D. All of the above

Answer 1

The correct option is D All of the above

Disadvantages

• Economic dependence: Too much dependence on imports may undermine the economy of a country.
• Restricted growth of home industries: Foreign trade may discourage the growth of domestic industries.
• Misuse of natural resources.
• Political exploitation.
• Import of harmful goods.
• Rivalry among nations.
• Invasion of culture.