Question

Companies that are in capital intensive, research-oriented industries like pharmaceuticals and industrial machinery primarily export to:

A. improve profitability

B. follow clients abroad

C. amortize costs of research and development

D. become profitable

E. leverage powerful brands

Answer 1

Companies primarily export to amortize costs of research and development.

Step-by-step explanation:

In capital intensive, research-oriented industries like pharmaceuticals and industrial machinery, companies primarily export to amortize costs of research and development. These industries require significant investment in research and development to develop new products and technologies. By exporting their products, companies can sell them to international markets and generate revenue to offset the costs incurred during the research and development phase.