Which of the Following Is a Reason Why Firms Are

question 57

Multiple Choice

Which of the following is a reason why firms are not proactive about seeking export opportunities?

• A) They are unfamiliar with foreign market opportunities.
• B) domestic regulations limit their ability to export profitably.
• C) they overestimate the time and expertise needed to cultivate business in foreign countries.
• D) they do not find the foreign market challenging enough.
• E) the export market is similar to the home market in terms of legal and business practices.

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Definitions:

Industry Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various prices.

External Benefits

Positive effects of a production or consumption activity on individuals or society who are not directly involved in the transaction.

Subsidizing Production

Financial assistance provided by the government or other institutions to reduce the cost of producing goods or services and encourage increased output.

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.