Nantucket Food Products desires to expand internationally. Director of Sales, Esme Jones, prefers that the company export to foreign markets. Which of the following rationales should Jones use as an advantage of choosing exporting as a mode of entry into foreign markets?
A. A firm can avoid the cost of establishing manufacturing operations in the host country.
B. A firm shares the development costs and risks with its host partner.
C. A firm can earn returns from process technology skills in countries where FDI is restricted.
D. A firm has access to local partner's knowledge.
E. A firm has the ability to engage in global strategic coordination.
Answer: A. A firm can avoid the cost of establishing manufaacturing operations in the host country