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Title: Internationalization of domestic companies
Description: Introduction to International Business I. This paper contains the diverse theories in which a domestic company can participate in globalization and reach foreign markets according to its characteristics, its products, or the environment in which it is found.
Description: Introduction to International Business I. This paper contains the diverse theories in which a domestic company can participate in globalization and reach foreign markets according to its characteristics, its products, or the environment in which it is found.
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INTERNATIONALIZATION OF THE DOMESTIC COMPANIES
There are many different theories in which a company can reach its internationalization
according its characteristics
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2
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4
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As well, there are three situations that don’t apply to
this phenomenon:
1
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2
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3
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In the modern world there are each time more companies that skip this steps and obey a
global focus since their creation or in the first two years of their lives, this organizations are
called “born global”
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The new conditions of the market
2
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The developed capacities of people, including the entrepreneur
Another of the schemes followed in the process of internationalization is Dunning’s eclectic
paradigm, which proposes four conditions that must be done for a company to exploit its
competitive advantages abroad through direct investments, which are:
1
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2
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3
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4
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One aspect to take into consideration at the moment of choosing to explore international
markets it’s the product’s life cycle, which explains the following theory, mentioning that
international trade and direct investments are related to the stages of the product’s life cycle
and that competition can force a company to invest abroad
...
New Product Stage (Introduction)
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2
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The company is induced to produce abroad
because it’s loosing
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Product’s Standardization Stage (Downhill)
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The last theory it’s the geo-business model, which explains the commercial actions of the
companies that develop their geographic perspective from a global analysis
...
Condition Variables: Determine if there are or not possibilities for the international
business, this includes characteristics of the product, of the home and room
countries, and their relations
...
Motivational Variables
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3
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Indicates the restrictive or potential actions from the home and
room countries
Title: Internationalization of domestic companies
Description: Introduction to International Business I. This paper contains the diverse theories in which a domestic company can participate in globalization and reach foreign markets according to its characteristics, its products, or the environment in which it is found.
Description: Introduction to International Business I. This paper contains the diverse theories in which a domestic company can participate in globalization and reach foreign markets according to its characteristics, its products, or the environment in which it is found.