The CEOs of Company A and B are investigating expansion into new markets,which will provide greater trade volume.Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?
A) Country X invests primarily in its textile industry, while Country Y focuses on producing high-yield crops.
B) Company A is willing to provide parts used in the production of equipment by Company B in exchange for discounts on manufacturing equipment.
C) The southern region of Country X over-produces a wide range of produce, while few crops can be efficiently grown in the northern region.
D) Company A and Company B are exploring the possibility of a joint venture to provide goods to Country X.
E) Country X is looking to invest in foreign markets and Country Y currently has a large trade deficit.

Question

Quizplus · Accepted Answer

A)The economic environment refers to relevant conditions, such as import and export opportunities, that exist in the economic system in which a company operates. In the above case, importing and exporting both refer to the movement of goods between different countries. Countries X and Y focus on a particular industry, which implies that these are areas in which they have an import-export opportunity.

The CEOs of Company a and B Are Investigating Expansion