A company that has to make large capital outlays before starting production will want to export in order to spread its costs over a large number of units produced.

Question

Quizplus · Accepted Answer

By exporting, the company can reach a larger market and sell more units, thereby spreading the costs of the capital investments over a larger volume of production. This can help the company to achieve economies of scale and reduce per-unit production costs.

A Company That Has to Make Large Capital Outlays Before