Academic journal article Global Journal of Business Research

Evolving Dynamics in the Process of Business Internationalization

Academic journal article Global Journal of Business Research

Evolving Dynamics in the Process of Business Internationalization

Article excerpt

ABSTRACT

Over the past century the global economic scene has undergone numerous rapid and ongoing transformations. The consequences of these changes are reflected in problems linked to organizational and qualitative adaption that companies must carry out in order to compete successfully. The goal is to achieve strong economic growth and obtain accurate and timely information regarding emerging markets. In this context it has become a priority for dynamic companies to take their business overseas in order to grasp opportunities offered by foreign markets for their goods and services.

JEL: F0; F13; F23

KEYWORDS: internationalization, economic development, competitive ability

INTRODUCTION

Globalization places markets in ever closer contact, reduces physical and cultural differences and intensifies international competition. All this puts the survival of various types of companies at risk. Yet, at the same time, it offers a growing range of business opportunities for enterprising companies, provided they are able to create a distinctive image for their products and services on the world market. Technological innovations that have reduced cognitive differences allow companies easier and more rapid access to information making them better able to compete offering opportunities for expanding business. Given the ease with which a business can become global, few sectors can consider themselves safe. Thus, the only means of defense is an offensive strategy, in other words to accept the challenge. Perhaps the best ways for companies to do this is enter the international market themselves.

The expansion into foreign markets, business internationalization, represents a basic means for creating value, guaranteeing returns on investment, increasing competitive edge, and gaining new opportunities and means for growth. Nevertheless, the decision involved in going global is complex since the factors to be considered are numerous and unpredictable. Moreover, one can never have all the relevant information on foreign markets or their environmental conditions. This is obviously the case for large companies but also, and especially, for small and medium ones. In the past internationalization was a course taken nearly exclusively by large scale companies. They were the only firms in a position to overcome trade barriers and other obstacles and establish themselves on major overseas markets. Only in recent years that smaller sized businesses have become a presence on the international scene. One of the most interesting characteristics of the current global economic situation is the birth of a new phase of internationalization, in which no company of whatsoever size or sector is unaffected.

The summary of the paperr is as follows: Section 2 describes the literature review. Research, methodology and empirical models are described in the Section 3. Section 4 presents the findings of the research. Section 5 concludes the paper, highlighting the limits and the future research perspectives.

LITERATURE REVIEW

Market globalization involves companies of all sizes competing against each other on the international market where it is increasingly difficult to assess external threats or opportunities and evaluate strong points or areas for improvement within the company. Generally globalization is seen as a recent phenomenon, beginning around the late 1980s and early 1990s. Several factors can be cited to explain its emergence: the marked expansion of the private sector both on the domestic and international scene; the crisis and collapse of Communist block, especially in the Soviet Union; and the growth and spread of new information science technologies, both in the business sphere and in every day life. All of these have reduced the time, cost and technical difficulty of long distance communication. (Pepe, 2006)

At one time globalization implied the simple exportation of goods and services or, at most, the transportation of a plant used for production overseas. …

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