Question

Due to the high demand for its handmade soaps in Canada,Fragrance Exotica,an Indian Soap manufacturer,has decided to open a new manufacturing unit in Canada,thereby expanding overseas.In this scenario,which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?
A) trade barriers
B) manufacturer demands
C) customer demands
D) tax incentives

Answer 1

Answer:

Option C Customer demands

Explanation:

Customer demand is the desire of customer to have the product. Customer demand is also sometimes referred to as Product demand, though the customer demand is the features that the customer desires in the product and product demand is the demand of the product in the market. But one thing is common which is demand of the feature of the product. Now keep it simple, if their is a customer demand then there is business and if their is no customer demand their no business. Businesses collapse because there is no sales or in other words there is no demand of the product in the market and as a result the product sales is below no profit and no loss position. So the correct option is option C.