The disadvantages of exporting include high transportation costs, exchange rate fluctuations, and possible tariffs placed on imports into the local country.
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M&As can provide quick access to a new market; and, they are subject to fewer problems than domestic M&As.
Appreciating foreign currencies relative to the dollar increase the overall cost of investing in theU.S.
Quotas and tariffs on imports imposed by governments to protect domestic industries tend to discourage foreign direct investment.
Firms with significant expertise, brands, patents, copyrights, and proprietary technologies seek to grow by exploiting these advantages in emerging markets.