Importance Of Internationalization In International Business

Internationalization
Internationalization is the exchange of products and services throughout different countries. It is important to trade internationally for a nation’s economic importance and welfare. The need for exporting goods and services means that there will then be a revenue available for the purchase of imported goods which are not available in that country. The strength of a countries economy can be measured by the gross domestic product. (GDP) the GDP of an economy will rise when sales increase. Export growth is predicted to cause even more rises in the GDP levels of that economy.
The balance of payments the economic growth creates a demand which outputs only from that country cannot be met. Which means the faster the demand

Internationalization has a form in vertical integration which would bring new operations and activities.
Concept of internationalization
Internationalization is the outward movement of a firms operations. Although both inward and outward is important for the growth of international firms. With many of these studies being researched a framework has been built. Internationalization is so dynamic and is continually growing it is one the most advanced and mature areas of international business.
Uppsala Internationalization Model
This says that the process of internationalization is always evolving and a build-up of foreign commitments from over a long time. It was found that the growth patterns on were distinguished by a few small changes. This is called the internationalization process. There are four steps, no regular export activities, and export activities via independent representation or agents, the establishment of an overseas subsidiary and overseas production / manufacturing units. It shows that the more knowledge of the foreign markets and operations will determine successively greater levels of commitment to those overseas destinations. The psychic distance is the perceptions people have of how countries are different. Which means they tend to go to country which they feel are similar to the ones they

Skills, infrastructure, labour, land, natural resources and capital these are all required to compete in the industry. It is said that a nation does not get factors from previous years but creates them. The most important factors of production are what are the nations willing to invest and if they specialise in a particular product or service. By just simply having talent or knowledge it does not put you at a competitive advantage. Success comes from when a nation keeps creating factors. By specialising in certain things and trying to constantly upgrade them. They need to keep companies in other up to date on things that are starting to happen in their country so they can be prepared and come up with strategic methods to deal with the