The process of International Expansion of Firms

TL;DRAbstract

A firm may enter into the foreign market by different modes. Firm could operate in the foreign country by physical appearance in the host country such as establishing factories and joint venture. In contrast, some mode could be expands in the foreign country while operate from home country such as exporting. Exporting mode is very common to expand internationally. It required low investment relative to other modes such as joint venture and establishing factories in the foreign country. By applying this mode, a firm could operate through existing business. Through exporting, it is uncomplicated for firm while entering into to the foreign country and withdraws from the foreign country. This key feature provide high flexibility and encourage the businesses to apply exporting mode of entry while initially enter into the foreign market. Exporting mode of entry is high extent to apply on small scale firms relative to large scale firms. Small firms could take advantage by get in trade with fo

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