The first step a domestic firm takes when entering an international arena is usually to create an international division.

True / False.

The answer is: False

Explanation:

Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:

Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets. Any legal constraint or logistical problem you have to consider. Any local competition you have to worry about. Does your product fit in a new culture. And very many etceteras.

That should all be done before considering spending money on creating an international division.

Probably when the internet didn't exist, communications were scarce, no Tv existed, people in one country didn't know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn't make sense.