4. Which of the following explanations is commonly cited as a reason that rms do

Question

4. Which of the following explanations is commonly cited as a reason that rms do not seek export opportunities more aggressively?

a. Firms are reluctant to adjust their nancial practices.

b. It is dif cult for foreign customers to communicate their needs to an exporter.

c. Exporting is an activity best left to large rms.

d. Firms are unaware of foreign market opportunities.

7. The company that hires an intermediary in the belief that indirect selling has the most appeal in helping it manage the export process must accept ____________.

a. lower pro t margins
b. that they must forsake control over aspects of its international sales c. more responsibility for customer satisfaction
d. the need to better understand trade regulations

Explanation / Answer

1. The correct option is a. Firms are reluctant to adjust their nancial practices. Because firms are familiar with native market are not find it difficult to adjust in foreign markets.

2. The correct option is a. lower profit margins

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