Question

A relatively low-risk business operation that involves penetrating foreign markets (by exporting) or importing merchandise at competitive prices for domestic consumption refers to _______.

Answer 1

The correct answer is: Export-import business.

Step-by-step explanation:

Export-import businesses base their operations in selling and purchasing goods from other countries typically where production processes are lower or where technology advancements are more steps ahead, thus, there is a need to acquire the new technology from the producing countries. Compared to other investment strategies, it carries a lower risk since the operations directly depend on the vendors and purchasers without middlemen that could influence the transactions.

Answer 2

Full question:

A relatively low-risk business operation that involves penetrating foreign markets (by exporting) or importing merchandise at competitive prices for domestic consumption refers to _______.

a. Foreign acquisition

b. Franchise

c. Joint venture

d. License

e. Export-import business

Answer:

A relatively low-risk business operation that involves penetrating foreign markets (by exporting) or importing merchandise at competitive prices for domestic consumption refers to Export-import business

Step-by-step explanation:

An import-export business is a company that promotes sales of goods and commodities among domestic and foreign companies. Export/Import permit can trade his produced goods to clients abroad, can serve as a mediator among the local manufacture and across buyer or vice versa, and can be immediately purchasing goods manufactured overseas and trading them in the local market.

The export-import business grows unique with the responsibility of different stakeholders and risks, which do not develop into the design with domestic trade.