Exporting Is Nearly Always a Way to Increase the Revenue

question 15

Multiple Choice

Exporting is nearly always a way to increase the revenue and profit base of a company because

• A) there is little competition in the international market.
• B) foreign governments encourage imports from other countries.
• C) international markets are less complex than their domestic counterparts.
• D) the international market is much larger than the domestic market.
• E) it does not involve wasting resources on paperwork.

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Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, indicating the benefit to producers.

Market Price

The current price at which a good or service can be bought or sold in the market.

Costs Of Production

The expenses incurred in manufacturing a product or providing a service, which may include raw materials, labor, overhead, and any other costs directly tied to the production process.

Basketball

A team sport in which two teams, typically of five players each, opposing one another on a rectangular court, compete with the primary objective of shooting a basketball through the defender's hoop.