​Logically sequence the following in the process of entering international markets outlined in the Uppsala model.
1. Sporadic (Ad hoc) exports
2. Foreign production and manufacturing
3. Establishing a foreign sales subsidiary
4. Domestic operations and production
5. Exporting via an independent representative
Choose the correct answer from the options given below:

Correct option is C

The Uppsala model describes a stepwise, incremental approach to entering international markets. The logical sequence is as follows:

1. Domestic operations and production: Initially, businesses focus on their domestic market before looking outward.
2. Sporadic (Ad hoc) exports: Once domestic operations are stable, companies may begin exporting on an ad hoc basis, testing the waters internationally.
3. Exporting via an independent representative: With growing confidence, businesses formalize their export processes by partnering with agents or representatives abroad.
4. Establishing a foreign sales subsidiary: Once international operations gain momentum, companies set up their own subsidiaries to directly manage sales in foreign markets.
5. Foreign production and manufacturing: Finally, companies establish production facilities in foreign markets for greater control and cost efficiency.

Information Booster:

• The Uppsala model, developed by Johanson and Vahlne, emphasizes that internationalization occurs in stages, reflecting learning and resource commitment.
• This model is built on the principles of experiential learning and incremental decision-making.
• Key points to note:
  1. Companies begin with minimal commitment (e.g., sporadic exports).
  2. Risk and resource allocation increase progressively with experience.
  3. The model explains why firms often prefer entering geographically or culturally proximate markets first.