A focal firm is "the initiator of an International business transaction, they conceive, design and produce the offerings [goods or services] intended for consumption" (Cavusgil, Knight and Riesenberger ,2008, International Business). Basically their are many firms that help in the making of a car (lets say a VW Golf) a firm may assemble the car and another may provide the means of distribution but the focal firm is still VW it is for all intents and purposes 'their car'.
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