Which of the following is not an advantage of exporting?

(a) Easier way to enter into international markets

(b) Comparatively lower risks

(c) Limited presence in foreign markets

(d) Less investment requirements

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Solution

Exporting involves selling of goods to other countries. It has various advantages, such as lower risks, less requirement of investment and easier way of entering into international markets. However, the limited presence that it offers exporting firms in international markets is a disadvantage of exporting.

Hence, the correct answer is option (c).

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Similar questions

In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad?

Only a minimal investment is required from the franchiser to enter the foreign market.

In joint ventures, the risk of entering foreign markets is shared by the partner firms.

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