A drawback of exporting is that tariff barriers can make it uneconomic

QUESTION

A drawback of exporting is that tariff barriers can make it uneconomical as a mode of entry into a foreign market.

Indicate whether the statement is true or false.

ANSWER

TRUE
A drawback of exporting as a mode of entry into a foreign market is that tariff barriers can make it uneconomical. Similarly, the threat of tariff barriers by the host-country government can make it very risky.