Question

Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms incur high transportation costs to distribute its products. Juggernaut, Inc. wants to enter foreign markets via exports. How can Juggernaut, Inc. avoid incurring high transport costs when exporting its bulk products?
A. setting up subsidiaries irrespective of market reachB. entering into a turnkey project with a foreign firmC. manufacturing bulk products regionallyD. taking a minority equity interestE. reducing the quantity of the product offering

Answer 1

Answer:

C. manufacturing bulk products regionally

Explanation:

Juggernaut, Inc. can avoid incurring high transport costs when exporting its bulk products by manufacturing bulk products regionally.

When the products are manufactured regionally, it would help to ensure that they are available at most locations for potential buyers and at such limiting transport or shipping costs.