Final answer:
Option (C), Small businesses have the advantage of being able to produce small niche products more efficiently than large corporations, thanks to their flexibility and ability to specialize in particular niches while benefitting from economies of scale through international trade.
Step-by-step explanation:
In the context of entrepreneurial businesses, small businesses have several advantages over big businesses. One key advantage is their ability to produce small niche products. Small businesses are often more flexible and can quickly adapt to changing market conditions or consumer preferences, thereby efficiently catering to specific segments of the market. This flexibility is not just confined to product offerings but extends to financial management and decision-making since small businesses often do not have the bureaucratic hurdles that large corporations face.
Additionally, international trade provides opportunities for small businesses to achieve economies of scale that they wouldn't be able to accomplish on their own domestically. Through specializing in a particular niche, small businesses can produce at a lower cost and with greater efficiency, while still benefiting from a global market. Moreover, competition and a wide variety of producers in the international market ensure that businesses continue to innovate and maintain quality to appeal to their target market segments.