Explain why it is especially critical for a firm to select the most appropriate market for its product or service during the primary stage of internationalization

What are the negative consequences of making a poor market selection for firms planning to globalize through FDI?
What will be an ideal response?

The choice of country markets is particularly important in the early stages of internationalization. Failure to choose the right markets will not only result in a financial loss, but the firm will incur opportunity costs as well. That is, by choosing the "wrong" markets, the firm ties up resources that it might have more profitably applied by choosing the right markets. When entry is planned through foreign direct investment (FDI), choosing the right market is especially critical because FDI is very costly and sets the stage for further expansion in the same or adjoining markets. With FDI entry, the cost of abandoning the market and terminating relationships can easily exceed millions of dollars.