Question

Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. However, when Hestonia faced an economic downturn and its citizens began to reduce their expenditures, Merticao began to focus more on its domestic market. As a result, Merticao was able to survive the loss of its primary market because of _________ in global trade.a. access to factors of productionb. reduced riskc. ease of storage of goodsd. inflow of innovation

Answer 1

Reduced risk

Step-by-step explanation:

Merticao had operations in France and North America so their risk was spread out, with local and international businesses complimenting themselves.

So when their primary operations in North America they fell back on their local operations and survived the economic downturn.

Merticao made a wise choice by diversifying their business and reducing risk of being in only one market.