STAGE 2: INTERNATIONAL COMPANY Some domestic firms decide to exploit opportunities outside the home nation. Such companies are Stage 2 companies, also known as International Companies. The focus of such a company is domestic but it extends its wings to the foreign countries. They export their surplus production abroad after meeting domestic needs. It selects a strategy of locating a branch in the foreign market and extend the same domestic operations into foreign markets. All domestic practices are transferred to the foreign markets. There is no customization, but only standardization of products. It follows the ethnocentric approach.