$2.$ Practice Group Ltd$.$ is a company with no exporting experience that has had declining domestic

sales, increasing numbers of competitors and cash flow difficulties over the past couple of years. The

marketing director is considering the possibility of exploring new markets in Asia to boost profits and

improve cash flow. Is this a good option for the company?

a$.$ Yes, because when a company has domestic sales that are declining, it should automatically

diversify into new international markets

b$.$ Yes, because increases in export sales will always improve cash flow

c$.$ No$,$ because the investment and uncertainty involved in opening new markets is not usually a

good fit for a company with declining sales and cash flow difficulties

d$.$ No$,$ because international markets will always have more competitors than domestic market