Which of the following is NOT a risk of exporting? Select one: a. Delegation of marketing activities to a local agent b. Location diseconomies c. Tariff barriers d. Transportation costs e. High manufacturing costs

E. High manufacturing cost

Explanation:

Export involves the sales of goods and services to another country. It is part of the international trade whereby goods produced in a country are sold to other countries. Just like all business activities, there are risk involved. Risk of exporting is the likelihood that there will be a loss in the sales of goods and services to another country. Various risk factors includes tariff barriers, cost of transportation and so on.

However, high manufacturing cost is not a risk of exporting. High manufacturing cost is the increase in the cost of producing and manufacturing a certain good. When this increases or rather when it's high, the prices of the products manufactured also increases. So there is no potential loss posed by high manufacturing cost.

High Manufacturing Costs

Explanation:

Exporting involves shipping goods (by sea or air, or road) to other countries. Manufacturing costs will be a concern in the country of production before the products are exported. One the products are completed only then will they be eligible for export and other factors will play a role, however manufacturing costs is not one of these factors as the product is already completed and ready to be exported.