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.

---

Definitions:

Approved

Authorization or sanction officially given.

Accredited Investor

An individual or a business entity that is allowed to deal in securities that may not be registered with financial regulatory authorities.

Natural Person

A human being, as opposed to a legal person, which can be an organization or entity recognized by law.

Corporate Assets

Corporate Assets encompass all assets under the ownership of a corporation, ranging from physical assets like buildings to intangible assets like patents.