Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. However, when Hestonia faced an economic downturn and its citizens began to reduce their expenditures, Merticao began to focus more on its domestic market. As a result, Merticao was able to survive the loss of its primary market because of _____ in global trade.
A) reduced risk
B) access to factors of production
C) ease of storage of goods
D) inflow of innovation

Question

Quizplus · Accepted Answer

Diversifying markets reduces risk by not relying solely on one market, allowing Merticao to survive the downturn in Hestonia.

Merticao, a French Textile Company, Supplied Most of Its Products