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Business Studies

Evaluating Different Modes of Entry

Which of the ...

Question

Which of the following is not an advantage of exporting?

A

Easier way to enter into international markets

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B

Comparatively lower risks

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C

Limited presence in foreign markets

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D

Less investment requirements

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Solution

The correct option is C
Limited presence in foreign markets

Limited presence in foreign markets is not an advantage of exporting.

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Similar questions

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

Q. Exposure to foreign investment risks is nil or much lower in foreign trade. This is because of which of the following advantages of exporting/importing?

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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Evaluating Different Modes of Entry

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