Jeff, the sales manager for Audio-Visual Systems, a small family business, is eager to get the company on an export path. The CEO of the company is not convinced, however. To convince the CEO, Jeff should point out that firms that do not export often
A) face problems of currency conversion.
B) lose out on significant opportunities for cost reduction.
C) are able to reduce their unit costs.
D) typically grow faster than those that do.
E) can more easily leverage their technology in foreign markets.

Question

Quizplus · Accepted Answer

Firms that do not export often miss out on significant opportunities for cost reduction, as exporting can lead to economies of scale and access to cheaper resources or labor.

Jeff, the Sales Manager for Audio-Visual Systems, a Small Family