Which of the following is a benefit for U.S. businesses that choose to export?

• A. Higher domestic competition
• B. Reduced exposure to international regulations
• C. Access to larger markets and increased sales opportunities
• D. Decreased product diversification

Answer: (C)

Verified step by step guidance

1. Understand the concept of exporting: Exporting refers to selling goods or services produced in one country to buyers in another country.
2. Identify the potential benefits of exporting for U.S. businesses, such as access to larger markets, increased sales opportunities, and potential economies of scale.
3. Recognize that exporting generally increases exposure to international regulations rather than reducing it, so 'Reduced exposure to international regulations' is not a benefit.
4. Consider that exporting often leads to increased product diversification to meet different market demands, so 'Decreased product diversification' is unlikely to be a benefit.
5. Conclude that the main benefit among the options is 'Access to larger markets and increased sales opportunities' because exporting allows businesses to reach more customers beyond domestic borders.