Which of the following is true of reactive firms?
A)They may not even consider exporting until their domestic market is saturated
B)They create excess productive capacity and actively hunt for opportunities in foreign markets
C)Almost all large firms fall under this category
D)They systematically scan foreign markets for profitable export opportunities

Question

Quizplus · Accepted Answer

Reactive firms are those that wait until their domestic market is saturated before considering exporting. Therefore, option A is the correct choice. Option B describes proactive firms, not reactive ones. Option C is not necessarily true as not all large firms fall under this category. Option D describes proactive firms as well, not reactive ones.

Which of the Following Is True of Reactive Firms