Which of the following are two benefits to suppliers of exporting?

• A. Higher tariffs and increased regulatory barriers
• B. Reduced competition and lower production costs
• C. Access to larger markets and increased sales revenue
• D. Decreased product variety and limited customer base

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of exporting from the supplier's perspective. Exporting means selling goods or services to foreign markets outside the domestic market.
2. Step 2: Identify typical benefits suppliers gain from exporting. These often include access to larger markets beyond domestic borders and the potential for increased sales revenue due to higher demand.
3. Step 3: Recognize that higher tariffs and increased regulatory barriers are generally disadvantages, as they increase costs and complicate market entry.
4. Step 4: Note that reduced competition and lower production costs are not direct benefits of exporting; competition often increases in international markets, and production costs depend on other factors.
5. Step 5: Understand that decreased product variety and limited customer base are disadvantages, not benefits, as exporting usually expands the customer base and may encourage product diversification.