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Question
question 7
12 pts
in the ____ stage, an international division has replaced the export department, and specialists are hired to handle sales, service, and warehousing abroad.
domestic
international
global
multinational
Identify the stages of international evolution
In organizational theory, companies typically evolve through four distinct stages of international development: domestic, international, multinational, and global. Each stage is characterized by a specific structural design to handle foreign operations.
Analyze the characteristics of the domestic stage
In the domestic stage, the company is primarily domestically oriented, but may have some initial export activities. These activities are typically handled through an export department, and the Organizational Structure remains mostly domestic.
Analyze the characteristics of the international stage
In the international stage, the company begins to take exports more seriously and structures itself to reflect this. The export department is replaced by an organized international division. Specialists are hired to handle sales, service, and warehousing abroad to manage the growing foreign market operations.
Compare with other options
- Multinational stage: The company has extensive experience in international markets and has marketing, manufacturing, or other facilities in many foreign countries.
- Global stage: The company no longer thinks of itself as having a single home country; the entire world is its marketplace, and the structure is highly integrated globally.
Therefore, the stage where an international division replaces the export department is the international stage.
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