Question

find a news article that discusses small business internationalization startup (new business internationalization, business startup internationalization, etc.) internationalization. Provide a brief description along with the URL.

Answer 1

A key principle when creating new companies nowadays is to think Global. The way Internationalization impacts economic performance is closely related to innovation. There are two groups of factors involved in it.

1. Factors that increase a firm's capacity to innovate - or innovative capacity

2. Factors that allow a firm to better exploit its technological developments, being able to protect and appropriate the fruits of innovation.

Internationised firms may generally :

• Use country-specific advantages.
• Hire better and diverse technical talent.
• Access a wider range of resources available globally.
• Borrow and exploit new ideas, imitate other firm's developments, and integrate new research findings in products and processes.
• Make contacts and establish alliances with local suppliers, universities, research centers, and competitors.
• Adapt technology to local markets,thereby improving responsiveness and technical support, and engaging in local scientific cooperation.
• Improve the quality of new products by assessing the changing needs and requirements of the customers.
• Recognize and react to foreign customer demands.
• Avoid fluctuations and business cycles specific to a single market/region.
• Charge higher prices and offer products to a bigger number of potential clients, hence covering better the costs associated with innovation.
• Create international alliances to get access to complementary assets - which determine who benefits and loses from innovation.
• Benefit from economies of scale lowering production costs and increasing performance.

Firms with a higher degree of Internationalization are able to innovate more, as well as protect and exploit better those innovations. This in turn, allows them to outperform less international competitors, therefor improving their market reach, and ultimately, their economic performance.