Companies are likely to export products abroad in all of the following situations EXCEPT which one?
A) when their average cost per unit of home country production declines substantially by increasing output
B) when they want to use the riskiest but most profitable method to engage international trade
C) when they aim to increase degree of market diversification
D) when they are new to international business

Question

Quizplus · Accepted Answer

Exporting products using the riskiest method may not be the best approach for companies looking to engage in international trade as it could result in significant financial losses. Therefore, companies are less likely to export products abroad when they want to use the riskiest but most profitable method to engage in international trade.

Companies Are Likely to Export Products Abroad in All of the Following