Final answer:
The main answer to the question about what focal firms that internationalize through exporting will most likely perform in the home market is D) manufacturing. Exporting involves producing goods in one's own country and then selling them abroad, keeping the manufacturing process domestic while participating in international trade.
Step-by-step explanation:
The question you’ve asked is about the functions that a focal firm will most likely perform in their home market when they internationalize through exporting. The main answer is D) manufacturing. When a firm chooses to export, it means they produce goods domestically and then ship them overseas for sale. This allows them to keep their manufacturing processes within their original country, while expanding their market reach globally.Firms that internationalize may carry out various functions like marketing, sales, and distribution, but these activities are often performed in the markets where the goods are sold. Manufacturing remains the core activity in the home market before products are exported. This is supported by economic models, which show that firms produce goods and services and sell them to households or other countries which in turn generates revenue for the firm. Also, from a currency perspective, firms face costs in their home currency, while their revenues from international sales are often in foreign currencies.In conclusion, manufacturing is a key activity that is most likely retained in the home market, as it allows the company to maintain control over production while seeking to maximize profits through foreign markets.