Question

Regular foreign marketing stage differs from the international marketing stage as companies at the regular foreign marketing stage:

A. fail to actively seek customers in international markets.
B. market their products in international markets only when there is a surplus in production.
C. fail to represent careful strategic thinking about international expansion.
D. lack permanent productive capacity that is devoted for production of goods and services to be marketed in international markets.
E. focus all their operations and production to service the domestic market needs even though they are interested in foreign markets.

Answer 1

Companies at the Regular Foreign Marketing Stage export products to foreign markets typically only when there's surplus production and lack dedicated international production capacity. Foreign direct investments involve more commitment and long-term planning compared to portfolio investments. Investment in economic infrastructure is crucial for the growth of domestic and international business operations.

Step-by-step explanation:

The Regular Foreign Marketing Stage is characterized by companies that do not have a consistent strategy for pursuing international markets. The primary difference at this stage compared to the International Marketing Stage is related to companies' approach towards exports and investments. Companies at the Regular Foreign Marketing Stage typically export products to foreign markets only when there is a surplus in their domestic production and do not have dedicated production capacity for foreign markets. This contrasts with International Marketing, where companies are more proactive and strategic about their global market presence, often having permanent capacity dedicated to serving international customers.

Companies at this stage may still be interested in foreign markets, but their focus on domestic market needs influences the extent of their foreign engagement. In comparison, foreign direct investment (FDI) assumes managerial responsibility and a long-run perspective. FDI requires more commitment as it is not as liquid as portfolio investments, which can be quickly adjusted through financial markets, involving more planning and taking weeks or months.

Moreover, economic development and infrastructure investments in countries are essential for supporting the growth of both domestic and international firms, with a high level of saving required to pay for such projects.