Organic Towel Exports (Scenario)

question 35

Multiple Choice

Organic Towel Exports (Scenario)
The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's website. Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels.
-Which of the following most likely supports OTC exporting their towels to Earth Waves?

• A) Domestic sales of OTC towels have dwindled, and a new market is needed.
• B) Earth Waves is located in an excellent location in central Toronto.
• C) OTC is an SME that can readily adapt to the demands of the Canadian market.
• D) The founder of OTC has numerous contacts in Canada.