Question

Which of the following is not an advantage of exporting?

Options

• Easier way to enter into international markets

• Comparatively lower risks

• Limited presence in foreign markets

• Less investment requirements

Answer 1

Exporting involves selling 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 Limited presence in foreign markets.