Naomi, the product line manager for a small family business believes that it is time for the company to begin exporting its product to foreign markets. Her father, the owner, is skeptical. To convince her father, Naomi points out thatMultiple Choicefirms that do not export often lose out on significant opportunities for cost reduction.exporting is easier because international markets are less complex than domestic markets.firms that do not export are at a greater risk for economies of scale.exporting will allow the company to avoid taxation requirements in the domestic market.

Exporting is often all a company needs to internationalise when… Group of answer choices Production costs fall with scale and foreign markets require little or no product adaptation. The ratio of per-unit production cost to transport cost is low. Trade barriers are high and products are not easily transported. Different markets require significant product adaptation.

A U.S. cosmetics manufacturer would like to sell products Japan, India, and South Korea and is considering using an export agent instead of trading directly. One advantage of this arrangement is that the company would not have to deal withMultiple Choiceforeign currencies.a middleman.rising labor prices.the procurement of resources.

Which of these is not a benefit of exporting?a.easy to lose sight of home marketsb.reducing your reliance on any single marketc.larger economies of sale d.better margins

With indirect exporting, the firm itself contacts the potential consumers overseas and either sells direct to the end user in the target market, or appoints an overseas agent to act as a distributor for their products in that market.Group of answer choicesTrueFalse

True or false: Trade barriers typically decrease an entrepreneur's costs of exporting products or semifinished products to a country.True false question.TrueFalse