Algoma Treasures, a gift-wrap manufacturer, is considering expanding its business into the international market. What key question must have a positive answer before a company begins international operations?
A) Is there a demand for its products abroad?
B) Is there a favourable balance of trade?
C) What is the currency exchange rate?
D) Is there a favourable balance of payments?
E) Is local culture compatible?

Question

Quizplus · Accepted Answer

Before expanding into the international market, a company must ensure that there is a demand for its products abroad. Without demand, the expansion may not be profitable. The other options are also important considerations, but demand is the most critical factor when considering international operations.

Algoma Treasures, a Gift-Wrap Manufacturer, Is Considering Expanding Its Business