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.

Question

Quizplus · Accepted Answer

There are several reasons firms do not take a proactive approach while seeking export opportunities. One reason is that most firms are unfamiliar with foreign market opportunities, they do not realize how big the potential market is, or where the opportunities are. A second reason firms take a reactive approach to exporting is because 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. A third reason for firms not being proactive about exporting is the number of problems neophyte exporters typically face when trying to do business abroad.

What Is a Reason That Firms Take a Reactive Approach