Favorable foreign market conditions that encourage firms to internationalize are known as ________.
A) proactive factors
B) reactive factors
C) push factors
D) pull factors

Question

Quizplus · Accepted Answer

Pull factors are favorable foreign market conditions that encourage firms to internationalize, such as attractive growth rates, access to resources, favorable regulatory environments, and favorable exchange rates. Proactive factors refer to a firm's internal motivations for internationalization, while reactive factors are external shocks or pressures that prompt a firm to internationalize. Push factors refer to factors that make it difficult for a firm to remain in its domestic market, such as intense competition or unfavorable economic conditions.

Favorable Foreign Market Conditions That Encourage Firms to Internationalize Are