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Internationalisation of Firm

In: Business and Management

Submitted By vitthalsai
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Firms from big and developed countries internationalize by using many advantages and resources to compete and to survive in the economy industrial, they face many difficulties such us political issues, economy changes, environmental, technology and lack of resources and many obstacles they go through with it while the process of internationalization. However, firms in developing countries such as China, going global for them is very easy process because they seek advantages such as compete and gaining profit and to built up a strong economy region, on the other hand they face challenges when embarking on overseas investment.

Internationalization of Firms:

Internationalization of firms is a process in which the firms in developing countries gradually raise their international participation in the world-wild economy. Firms internationalize for two factors a) - Economy= increase country revenue. b) - Business= to gain profit.

(The internationalization process of the firm- Jan Johnson 1973 university of Uppsala)

The Internationalization Model:

Market Commitment:

It’s all about two factors, the amount of resources and the average of commitment to use these resources in the market.

Market Knowledge:

A firm before going international should have a basic knowledge of market s opportunities, market environment, and performance of activities, resources, culture, language and technology. These can be different from market to market and time to time. The most important is the outside knowledge. Market knowledge is considered as a resource and the better the knowledge is the better is the strong commitment to the market.

Commitment Decisions:

Before decision making any firm should think on what alternatives are available and on what they depend on problems or…...

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