Many medium-sized and small firms are not proactive in seeking export opportunities because:
A) they are familiar with the foreign market and do not find it challenging enough.
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 foreign countries.
D) domestic regulations limit their ability to export profitably.
E) they overestimate the time and expertise needed to cultivate business in foreign countries.

Question

Quizplus · Accepted Answer

Many small and medium-sized firms are intimidated by the complexities of exporting to foreign countries due to factors such as unfamiliar business practices, language barriers, and cultural differences. This can lead to a lack of proactive effort in seeking export opportunities. Options A and B are incorrect as they assume familiarity with the foreign market and similarity to the home market, respectively, which may not always be the case. Option D is incorrect as domestic regulations may or may not limit exporting profitability depending on the country and industry. Option E may also be a factor but is not the best choice as it is not as common as the fear of complexity and mechanics of exporting.

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