Question

Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, a company normally passes through all the following activities except __________?

Answer 1

Privatization is not typically an activity companies pass through before reaching stage 4 of exporting. Privatization usually relates to the broader economic development of a country.

Step-by-step explanation:

Research has shown that exporting is a developmental process that occurs in stages. Before reaching stage 4, which is often characterized by active and strategic expansion, companies are expected to pass through various activities. One activity that is not typical of the earlier stages could be privatization, which refers to selling or transferring government-owned businesses to individuals. This process is more commonly associated with the internal restructuring of a country's economy as it becomes more developed, rather than the initial stages of a company starting to export. In the initial stages, companies tend to focus on domestic operations before gradually moving towards international trade, which includes activities such as understanding foreign market demands, establishing distribution networks, and adapting products to fit foreign consumer tastes.