Sociology, asked by aswanthsukumar968, 1 year ago

Internationalization stages and orientation

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Answered by kingmaker1210
1
Internationalization refers to a state of growth and expansion in the global domain. The growth of a firm provides the background to internationalization (Buckley & Ghauri, 1993). ... traditional approach or stages model and bom global or new approach to internationalization (Crick, 2009).
 Internationalization is gaining importance and has now become animportant strategic issue for many companies. The decline in trade barriers anddevelopments in new technology have been the two major drivers towards greaterglobalization. The decline in trade barriers enable companies to view the world astheir market, rather than just looking at their domestic market (Borsheim &Solberg, 2004). They also stated that internationalization of firms is expected togain further momentum because the world economy is becoming increasinglyintegrated with continued decline in government-imposed barriers and advances intechnology. The investigation into factors that influence the choice regardingstrategy and performance during internationalization is important to bothresearchers and business professionals (Solberg, 2002).Internationalization process is normally categorized into two approaches viz.traditional approach or stages model and bom global or new approach tointernationalization (Crick, 2009). Traditional internationalization process theorybuilds upon the incremental process of a firm's experiential learning in foreignmarkets to explain incremental accumulation of commitment to foreign markets(Johanson & Vahlne, 1977; 1990). Despite its intuitive elegance and enduringprominence in the international business literature, this knowledge-based process 
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