A TRUE statement about export arrangements identified in the context of initial division structure is B. Firms can reduce the risk and size of investment in establishing significant international operations using an export arrangement.
Export arrangements help firms to manage their initial entrance into international trade. A firm with a narrow product line does not require a separate department.
Firms with advanced technological products do not avoid export arrangements. Firms with broad product lines do not have the export manager reporting to the Head of marketing because a separate export department is usually created to cater for international operations.
Thus, the true statement is B because export arrangements help firms to reduce risks.
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