O-LevelCommerceGlobal trade7100/11 · Oct/Nov 2015 · Q181 Mark

A manufacturer might prefer to sell goods in its home country rather than abroad because

Afactors and brokers must be used.

Binsuring against the risks of exporting is difficult.

Csetting up an overseas office requires very little expense.

Dtransport and storage costs are usually lower.

✓ Correct answer

D: transport and storage costs are usually lower.

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Topic: Global trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2015 Paper 1 Variant 1, question 18.

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