Which of the Following Is a Reason That Firms Take

question 48

Multiple Choice

Which of the following 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:

Satisfaction

The feeling of pleasure or contentment arising from the fulfillment of one's needs or desires.

Concessions

Compromises made by negotiating parties where one or more participants agree to make a change in their position to reach an agreement.

Bargaining Positions

The stance or demands made by negotiating parties as starting points for negotiations.

Negotiate

The process of discussing to reach an agreement or compromise between parties with differing views.