Question

What is the Internationalization Process Model?

What are Born Globals?

What is the monopolistic theory?

What is the internalization theory?

What is Dunning’s Eclectic Paradigm?

Give examples of the non-FDI based explanation of internationalization?

What is Porter’s Diamond model?

Answer 1

1.  Internationalization Process Model IS A theory in economics that explains how firms gradually intensify their activities in foreign markets.

2. Born global is a type of company that from the beginning of its activities pursues a vision of becoming global and globalizes rapidly without any preceding long term domestic or internationalization period. EX-----SKYPE, ZARA, LOGITECH ETC.

3. Monopolistic  Theory an approach in international business which explains why a particular national firm is able to compete with indigenous competitors in overseas market. He started by looking at international investments which classified into two: portfolio investment and direct investment.

4. Internalization theory is a branch of economics that is used to analyse international business behaviour.  A theory in economics that applies to a multinational corporation in shifting assets between subsidiaries across border.

5. It is a holistic economic model to determine whether a business should expand abroad through foreign direct investment. The eclectic paradigm is a theory that provides a three-tiered framework for companies to follow.  An eclectic paradigm is a theory based on a three-tiered framework that was first expounded upon in 1979 by the scholar John H. Dunning.

6. EXAMPLES-------STARBUCKS NOW HAS 500 COFFEE SHOP IN JAPAN JUST BECAUSE OF JOINT VENTURE WITH LOCAL PARTNER SAZABY INC.

7. Porter’s Diamond is an economic model that is developed by Michael Porter that aims to highlight and explain on why particular industries or nations become quite competitive in a particular location and on the national and international levels. The theory and model of Porter’s Diamond were incepted and designed in order to understand the competitive edge and advantage that certain nations and groups possess owing to the certain favorable factors available to them.