Exporting happens when a firm produces a product in its domestic plants and then ______

Exporting happens when a firm produces a product in its domestic plants and then ______

• A. Sells it in a foreign country
• B. Imports it for sale in the domestic market
• C. Licenses the product to foreign firms
• D. Produces for local-market distribution only

Answer: (A)

Exporting means selling goods that are produced in the home country to customers in another country. So, when a firm manufactures a product in its domestic plants and then sells it abroad, it is exporting. This contrasts with importing (bringing foreign-made goods into the domestic market), licensing (allowing a foreign firm to produce or sell the product), or producing solely for the local market. Exporting is a straightforward way to reach international buyers while keeping production in the home country.

Exporting means selling goods that are produced in the home country to customers in another country. So, when a firm manufactures a product in its domestic plants and then sells it abroad, it is exporting. This contrasts with importing (bringing foreign-made goods into the domestic market), licensing (allowing a foreign firm to produce or sell the product), or producing solely for the local market. Exporting is a straightforward way to reach international buyers while keeping production in the home country.