Why Do Companies Not Export

question 2

Multiple Choice

Why do companies not export?

• A) They do not wish to increase their sales.
• B) They do not feel a need for exporting.
• C) They are preoccupied with the host market.
• D) They are reluctant to embark on a new and unknown operation.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded is equal to the quantity of goods supplied, resulting in a stable market condition.

Surpluses

Surpluses occur when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.

Rationing Function

The process by which the market system allocates goods and services to consumers when supply is limited.