Exporting, as a mode of entry into foreign markets, does not help a fi

QUESTION

Exporting, as a mode of entry into foreign markets, does not help a firm achieve experience curve and location economies.

Indicate whether the statement is true or false.

ANSWER

FALSE
Exporting may help a firm achieve experience curve and location economies. By manufacturing the product in a centralized location and exporting it to other national markets, the firm may realize substantial scale economies from its global sales volume.