Darren bloom, the sales manager for john fountain products, a small family business, is eager to get the company on an export path. the ceo of the company is not convinced, however. which of the following is an advantage of exporting that bloom should use to convince the ceo?
a it in easy currency conversion.
b it reduces the administrative costs incurred by a company.
c it provides large revenue and profit opportunities.
d it reduces paperwork and complex formalities.
e it companies increase their unit costs.
The correct answer is C
Exporting is the term which is defined as the function of the international trade whereby the goods are produced or manufacture in one country and then are shipped to another country for the purpose of future sale or trade.
In order to convince the CEO for exporting the Bloom, he should state the advantage that on exporting, the company will have or provide large amount of revenue and the opportunities for profit.
B. It provides large revenue and profit opportunities.
In order to convince the C.E.O of the company, Darren Bloom should explain about the opportunities of earning large revenue and maximization of profit as the average orders from international customers are often larger than they are from domestic buyers, as importers generally order by the container instead of by the pallet which affects both total sales and total profits and as the business will grow rapidly.