Which of the Following Is True of Firms at the International

question 62

Multiple Choice

Which of the following is true of firms at the international marketing stage of marketing involvement?

• A) The primary focus of operations and production is to service domestic market needs.
• B) As domestic demand increases and absorbs surpluses, foreign sales activity is reduced or even withdrawn.
• C) Profit expectations from foreign markets are seen primarily as a bonus in addition to regular domestic profits.
• D) Planning generally entails production of goods outside the home market.
• E) The firm treats the world, including the home market, as one market.

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Definitions:

Squared Market Shares

A measure often used in calculating market concentration, where the market shares of all firms in the market are squared and then summed.

Concentration Ratio

An economic metric that assesses the total market share controlled by the top firms within an industry.

Rivals

Competitors in a market vying for the same customers or resources.

Reactions

Responses or adjustments made by individuals, markets, or materials to external changes or stimuli.