Question

Which of the following is true of the first two stages of international marketing involvement—no direct foreign marketing and infrequent foreign marketing?

A. A firm essentially progresses through the stages in a linear order.
B. The international marketing stage is a direct result of temporary surpluses caused by variations in production levels or demand.
C. A larger home market with a smaller production base favors internationalization.
D. A firm may be in more than one stage simultaneously.
E. At the global marketing level, a firm focuses on market segmentation based on geographical borders.

Answer 1

The first two stages of international marketing involvement progress linearly and can coexist. A larger home market with a smaller production base favors internationalization.

Step-by-step explanation:

The first two stages of international marketing involvement—no direct foreign marketing and infrequent foreign marketing—have several characteristics. First, A. A firm essentially progresses through the stages in a linear order. The stages represent an incremental increase in the firm's international marketing activity. Second, D. A firm may be in more than one stage simultaneously. This means that different parts of the firm may be at different stages of international marketing involvement at the same time. Finally, C. A larger home market with a smaller production base favors internationalization. When a firm has a large domestic market and a relatively small production capacity compared to its potential demand, it is more likely to look for opportunities in foreign markets.