Final answer:
Exporting increases overall sales volume and market share while reducing manufacturing costs due to economies of scale. It also provides small economies with the ability to specialize and benefits consumers through a greater variety of goods and competition-driven innovation.
Step-by-step explanation:
Among the options provided, the advantage of exporting that the question describes is D) It increases overall sales volume, improves market share, and reduces per-unit costs of manufacturing. Exporting allows companies to expand their market beyond domestic borders, leading to higher sales volumes. This can have the benefit of improving market share in the global market. Additionally, by increasing the volume of goods produced, firms can achieve economies of scale, which can lower the average cost per unit of their products, as fixed costs are spread over a larger number of goods.
International trade enables small economies to take full advantage of economies of scale by allowing them to specialize in the production of goods for which they have a comparative advantage. This leads to lower average production costs and gives consumers more variety from global competition. For instance, car manufacturers from various countries offer a wider range of vehicles globally, enhancing competition which drives innovation and ensures responsive production to consumer desires. This competitive pressure has historically led to improved quality in products.