Question

Your artisan candlestick manufacturing business is doing well domestically, so you decide to expand it to other countries. As you would like to make many international sales, you hope:

Option A. The dollar will depreciate against other currencies.
Option B. Foreign customers will bypass their domestic currencies.
Option C. Global shipping costs will decrease.
Option D. International trade regulations will become more restrictive.

Answer 1

When expanding internationally, it is beneficial for the dollar to depreciate against other currencies and for global shipping costs to decrease, while it is not desirable for foreign customers to bypass their domestic currencies or for international trade regulations to become more restrictive.

Step-by-step explanation:

When expanding a business internationally, it is beneficial for the dollar to depreciate against other currencies (Option A). A weaker dollar makes foreign currencies relatively stronger, which means that when the business earns foreign currency through export sales, it can convert them back to more dollars, resulting in higher profits. Additionally, a weaker dollar makes the business's products more affordable for foreign customers, leading to increased sales.

Foreign customers bypassing their domestic currencies (Option B) may not be desirable as it can lead to currency exchange complications and potentially discourage customers from buying the products.

Global shipping costs decreasing (Option C) would be advantageous as it would reduce the expenses associated with exporting the products to other countries, making international sales more cost-effective.

International trade regulations becoming more restrictive (Option D) would hinder the business's ability to expand internationally and engage in cross-border trade, limiting its potential for growth and sales.