Question

A manufacturing company that assigns a sufficiently high priority to its export business will establish an in-house organization for exporting. The effectiveness of this organization depends on which two factors?

Answer 1

The effectiveness of an in-house export organization depends on the economic conditions of the importing countries and the domestic economy of the exporting company itself.

Step-by-step explanation:

The effectiveness of an in-house organization for exporting established by a manufacturing company that assigns a sufficiently high priority to its export business largely depends on two main factors:

1. The economic conditions of the importing countries, including changes in relative growth rates and recessions, which can affect the level of demand for exports.
2. The domestic economic conditions of the exporting company, where more domestic income can result in a higher level of imports and investment in export infrastructure.

Both sets of factors are intertwined with global economic trends and trade policies, which have evolved with globalization and the establishment of trade agreements like NAFTA.