During the first class of exporting management, I have learned some basic knowledge about the exporting such as the definition of exporting, the incentives of exporting and different export modes. I knew that the role of exporting in the internationalization process is a stepping stone but not necessarily the first international activity. In order to understand the role of exporting, we need to find some common patterns in the internationalization history from different firms.
In my opinion, exporting is one of the traditional ways of entering the foreign market and is the most important mode of globalization. There are a large number of motives for exporting, which include financial stimulation, marketing-related stimulation, and customer-related …show more content…
William and Dennis (2000) state that small and medium-sized firms feel the pressure when they participate in international business. Because they often lack the resources and information which is necessary for them to engage in exporting (William and Dennis, 2000). Therefore, most of small and medium-size firms prefer to learn rather than earn the profit in the process of exporting. Though initial financial returns are uncertain or not soon forthcoming small firms can acquire new technology and new skills and have a chance to broaden their organizational capabilities in evaluating the success of exporting (William and Dennis, 2000). For the large firms, most of them prefer to earn more profit when they begin to open foreign markets or enter into the emerging markets (William and Dennis, 2000). In order to encourage small firms to export, the government should implement policies promoting their export activity and small firms should build up the confidence to face the …show more content…
There are four Swedish firms Sandvik, Atlas Copco, Facit and Volvo which are in the process of internationalization. Johanson and Wiedersheim-Pau (1975) claim that four firms are all small size when they begin internationalization, and the internationalization process is much faster in these firms. For the different parts of these firms, Sandvik and Volvo adopt a period of international joint ventures but Atlas Copco choose manufacturing establishments (Johanson and Wiedersheim-Paul, 1975). Sandvik and Atlas Copco start their internationalization process early while Facit and Volvo start establishing until the late 1920s (Johanson and Wiedersheim-Paul, 1975). Therefore, we need to compare different firms to discover and summarize their common patterns in the internationalization
In my opinion, exporting is one of the traditional ways of entering the foreign market and is the most important mode of globalization. There are a large number of motives for exporting, which include financial stimulation, marketing-related stimulation, and customer-related …show more content…
William and Dennis (2000) state that small and medium-sized firms feel the pressure when they participate in international business. Because they often lack the resources and information which is necessary for them to engage in exporting (William and Dennis, 2000). Therefore, most of small and medium-size firms prefer to learn rather than earn the profit in the process of exporting. Though initial financial returns are uncertain or not soon forthcoming small firms can acquire new technology and new skills and have a chance to broaden their organizational capabilities in evaluating the success of exporting (William and Dennis, 2000). For the large firms, most of them prefer to earn more profit when they begin to open foreign markets or enter into the emerging markets (William and Dennis, 2000). In order to encourage small firms to export, the government should implement policies promoting their export activity and small firms should build up the confidence to face the …show more content…
There are four Swedish firms Sandvik, Atlas Copco, Facit and Volvo which are in the process of internationalization. Johanson and Wiedersheim-Pau (1975) claim that four firms are all small size when they begin internationalization, and the internationalization process is much faster in these firms. For the different parts of these firms, Sandvik and Volvo adopt a period of international joint ventures but Atlas Copco choose manufacturing establishments (Johanson and Wiedersheim-Paul, 1975). Sandvik and Atlas Copco start their internationalization process early while Facit and Volvo start establishing until the late 1920s (Johanson and Wiedersheim-Paul, 1975). Therefore, we need to compare different firms to discover and summarize their common patterns in the internationalization