Stages of International Development

Question 1

Stage 1 (Domestic Company)

Answer 1

The primarily domestic company exports some of its
products through local dealers and distributors in the foreign countries.

Question 2

Stage 2 (Domestic company with export division)

Answer 2

Success in Stage 1 leads the company to establish its own sales company with offices in other countries to eliminate
the middlemen and to better control marketing.

Question 3

Stage 3 (Primarily domestic company with international division)

Answer 3

Success in earlier stages leads the company to establish manufacturing facilities in addition to sales
and service offices in key countries.

Question 4

Stage 4 (Multinational corporation with multidomestic emphasis)

Answer 4

Now a fullfledged MNC, the company increases its investments in other countries.

Question 5

Stage 5 (MNC with global emphasis)

Answer 5

The most successful MNCs move into a fifth
stage in which they have worldwide human resources, R&D, and financing strategies.