Taylor construction equipment inc. is concerned with the possibility of high transportation costs and the threat of tariff barriers when entering into a foreign market. Based on this, the entry mode that the construction equipment company should avoid are:
- franchising
- turnkey contracts
- exporting
- licensing
- joint ventures
What are tariff barriers?
The popular barrier to trade is a tariff–a tax on imports. Tariffs increase the price of imported goods in relation to domestic goods. Another popular barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods less costly to produce than in foreign markets.
Therefore, the correct answer is as given above
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