International divisions best serve firms with few products that do not vary significantly in terms of their environmental sensitivity and with international sales and profits that are still quite insignificant compared with those of the domestic divisions.

Question

Quizplus · Accepted Answer

International divisions are best suited for firms with standard products and small international sales and profits, as they can benefit from economies of scale and reduce risk through diversification. Firms with more complex products and larger international operations may require more customized strategies and coordination across divisions.

International Divisions Best Serve Firms with Few Products That Do