What Is a Reason That Firms Take a Reactive Approach

question 53

Multiple Choice

What is a reason that firms take a reactive approach to exporting rather than a proactive approach?

• A) Most firms are familiar with the foreign market opportunities and therefore do not need to utilize proactive approaches.
• B) They are intimidated by the complexities and mechanics of exporting to countries where business practices, language, culture, legal systems, and currency are very different from the home market.
• C) Most firms already know where the market potential and opportunities are and they do not need to be proactive.
• D) They are not intimidated by the complexities and mechanics of exporting to foreign countries and can, therefore, use the same reactive approaches that work in their home market.

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Definitions:

Peter Drucker

A highly influential figure in the field of management theory and practice, known for his contributions to the concept of modern business management.

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Gatherings or assemblies that are efficiently managed and effectively achieve their intended objectives, leading to valuable outcomes.

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A unique ability some individuals have to inspire enthusiasm, interest, or affection in others through personal magnetism or charm.

Referent Power

A form of influence derived from the charisma and interpersonal appeal of the leader, often leading to admiration and the desire to emulate.