Why Are Small and Medium-Sized Firms Not Proactive in Seeking

question 46

Multiple Choice

Why are small and medium-sized firms not proactive in seeking export opportunities?

• A)They are familiar with the foreign market and know where they lie.
• B)The export market is similar to the home market in terms of legal and business practices.
• C)They are intimidated by the complexities and mechanics of exporting to countries.
• D)Domestic regulations limit their ability to export profitably.

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Definitions:

Random Variation

The unpredictability in the behavior or outcome of a process, due to the influence of random factors or noise.

Cyclical Variation

Fluctuations in statistical or economic data that occur periodically over cycles, such as those caused by the business cycle.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.