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Question
Which of the following is a disadvantage of exporting as a mode of entry into foreign markets?
A. The firm incurs the costs of establishing manufacturing operations in the host country.
B. The firm is unable to realize experience curve economies through exporting.
C. The local agents may not market the firm's products as well as the firm would if it managed its marketing itself.
D. The firm cannot use countertrading options when exporting.
E. The firm may not realize substantial scale economies from its global sales volume via exporting.
Answer
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