Question

The first step a domestic firm takes when entering an international arena is usually to create an international division.
True / False.

Answer 1

Answer:

The answer is: False

Explanation:

Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:

• Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets.
• Any legal constraint or logistical problem you have to consider.
• Any local competition you have to worry about.
• Does your product fit in a new culture.
• And very many etceteras.

That should all be done before considering spending money on creating an international division.

Probably when the internet didn´t exist, communications were scarce, no Tv existed, people in one country didn´t know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn´t make sense.