Post Utme Covenant University 2022 Commerce Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2022 Commerce Objective / Multiple Choice
Question 34 POST_UTME_COVENANT_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering exporting its product to a foreign market. The firm's marketing manager has identified a potential customer in the foreign market who is willing to pay a price of 10 per unit. The firm's production costs are ₦5 million per unit, and the exchange rate is 1 USD = 500 Naira. What should the firm do?

Answer Options

Correct Answer A. Export the product to the foreign market
B. Do not export the product to the foreign market
C. Negotiate a higher price with the customer
D. Increase production costs to match the foreign market price
Correct Answer
A
Correct Option:
Export the product to the foreign market

About This Question

This is Post Utme Covenant University 2022 Commerce Question 34. It is one of the objective questions from the 2022 Post Utme Covenant University Commerce examination.

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