Four Stages Of Internationalization
The article is mainly about the four stages of Internationalization of firms. This distinguishes all four stages and shows that many other businesses system is experiencing an inevitable globalizing process to keep up with the concept of Globalization. Furthermore, they also focus these stages in the tourism businesses. The four stages are proposed by Johanson and Vahlne (1997), the stages are consist of the following; First stage – “Missionaries in the market”, this is basically about the tourism’s larger enterprises, that lead the firms to expand more. However, because of this emergence firms are handling their customers by the use of consolidation of employment in domestic tourism. More and more firms are trying to get connected to different new markets across the world and most of the time they get their man power to different countries for different reasons. As an example, most necessary jobs are been hired in high wage countries and the least importance are outsource in a lower wage countries. The second stage is “Integration Across Borders”, this is about Transnational Integration through business ownership, basically owning a firm in a foreign country. Another one is the Import and Export of business concept which deals in franchising and licensing of a firm in a foreign country. This is also seen as economic Globalization in Tourism based on the article. The third stage is “Fragmentation of the Value Chain” this simply talked about the outsourcing of product and
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