In managing their international marketing activities, most companies first ________.
A) organize an import department
B) create an international division
C) initiate foreign direct investment
D) form a domestic subsidiary
E) organize an export department

Question

Quizplus · Accepted Answer

The most common and basic approach for companies in managing their international marketing activities is to first organize an export department to handle the exportation of products to foreign markets. This allows companies to test their products in foreign markets with minimal investment and risk. Once a company gains experience in the international market, they may then choose to expand further through foreign direct investment, creating an international division, or forming a domestic subsidiary. Organizing an import department would be more relevant for companies that need to source inputs or raw materials from foreign markets.

In Managing Their International Marketing Activities, Most Companies First ________