Question

Arturo is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Arturo would list which of the following as an advantage of going global?
A. Exporting can help sell excess inventory.
B. Financing can easily be obtained to expand internationally.
C. Marketing programs benefit from the cultural similarities in prospective markets.
D. Selling your products in other markets reduces their life cycle, making them more attractive.

Answer 1

Answer: Exporting can help sell excess inventory (A)

Explanation:

From the question, Arturo specializes in the production of vitamins and health food products and the business is considered to be small by the standards of the United States and he tries to persuade his partner to expand internationally.

Expanding internationally will lead to greater revenue for the firm as there will be a larger market for the products produced and this larger market will buy the excess inventory.