Question

If a product is bulky or heavy, transportation costs increase, and unless the product has an extremely high value-to-weight ratio, the LEAST effective strategy would be _____________.

a. exporting
b. foreign direct investment
c. licensing
d. References

Answer 1

If a product is bulky or heavy, transportation costs increase, and unless the product has an extremely high value-to-weight ratio, the LEAST effective strategy would be a. exporting.

Step-by-step explanation:

If the cost of transporting the product to another country is too high because of its weight, exporting it may not be a good idea since the product would become less profitable and thus the manufacturer could not compensate for its cost of production, making the company lose money.