Darren Bloom,the sales manager for John Fountain Products,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,Bloom 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)are not intimidated by the business practices of foreign countries.
E)explore foreign markets to see where they can leverage their technology.

Question

Quizplus · Accepted Answer

Companies that do not export often miss out on significant opportunities for cost reduction by not taking advantage of economies of scale and lower costs of production in foreign markets. By exporting, John Fountain Products could potentially lower their costs and increase their competitiveness.

Darren Bloom,the Sales Manager for John Fountain Products,a Small Family