195k views
0 votes
There are two types of factors included in the entry decision for an exporter: factors that are market-driven and factors that are company- or product-driven.

a. True
b. False

User John Kealy
by
8.6k points

1 Answer

6 votes

Final answer:

Market-driven factors and company- or product-driven factors are the two types of factors that influence a country's level of trade. The correct answer is option a. True.

Step-by-step explanation:

True. There are two types of factors that influence a country's level of trade: market-driven factors and company- or product-driven factors. Market-driven factors refer to what is happening in the countries' economies that heavily affect the demand for a nation's exports. For example, if major importers of American-made products like Canada, Japan, and Germany have recessions, exports of U.S. products to those countries are likely to decline. On the other hand, company- or product-driven factors are specific to the exporters themselves, such as their production capacity, product quality, pricing strategies, and distribution networks.

User Connor Gervin
by
8.9k points