Question

All of the following are disadvantages of exporting EXCEPT? A. Itmay help a firm achieve experience curve economies B. High transportation costs can make exporting uneconomical C. Tariff barriers can make exporting uneconomical D. Exporting from a firm's home bases may not be appropriate if there are lower-cost locations for manufacturing the product abroad

Answer 1

Answer:

The correct option is A, It may help a firm achieve experience curve economies

Explanation:

Experience curve economics as the denotes implies that the longer a firm produces a product the more the cost per unit of the product falls.In international trade parlance,producing more to sell internationally gives the opportunity to produce beyond what is required locally,hence the know-how to produce cheaply is developed,consequently cost per unit drops thereby increasing profit per unit significantly.

The other points enumerated are disadvantages of exporting goods to other countries.