An advantage of exporting products to another country is that it _____.
A. gives firms access to local knowledge
B. minimizes exchange rate risks
C. faces less trade barriers
D. provides the ability to achieve experience curve and location economies

The experience curve is a concept introduced by the Boston Consulting Group that states "there is a consistent relationship between a firm's cumulative output and production costs".

Experience curves are primarily used to estimate the reduction in production costs as a result of cumulative production.

Why is the experience curve important?

Companies that benefit from the experience curve effect enjoy several advantages over their competitors. As the company grows and the production unit price drops, it will gain a larger market share than its competitors. This means controlling a large portion of the market and increasing your profit potential.

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An advantage of exporting products to another country is that it _____. A. gives firms access to local knowledge B. minimizes exchange rate risks C. faces less trade barriers D. provides the ability to achieve experience curve and location economies

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What is the Experience Curve and how they are used?

Why is the experience curve important?

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An advantage of exporting products to another country is that it _____.
A. gives firms access to local knowledge
B. minimizes exchange rate risks
C. faces less trade barriers
D. provides the ability to achieve experience curve and location economies