What is one of the main benefits of exporting for companies?

Exporting offers several advantages for companies, and one significant benefit is the lower risk associated with entering new markets. By exporting, companies can spread their business's risk across different geographic regions. This diversification helps reduce dependence on any single market, which can stabilize revenue flows, especially if domestic economic conditions fluctuate.

When companies export, they often engage with a variety of markets, which can diminish the vulnerability to downturns in one specific area. This risk mitigation is particularly valuable in today’s global economy, where business conditions can change rapidly due to political, economic, or social factors.

Looking at the other options, increased competition in domestic markets can actually complicate a company's position and may not be seen as a direct benefit of exporting. Higher production costs generally suggest inefficient production or increased expenses, which would not be advantageous. Limiting market access runs counter to the very purpose of exporting, which aims to expand a company's reach and market opportunities rather than restrict them. Therefore, the aspect of lower risk stands out as a key advantage of exporting for businesses looking to grow and stabilize their operations.