Full and clear summary of the Managing Internationalization given by F. De Beule. The summary includes all slides from the lectures, supplemented with own notes - including guest lecture and video cases
TABLE OF CONTENTS
TABLE OF CONTENTS ...................................................................................................................................... 1
INITIATION OF INTERNATIONALIZATION ........................................................................................................ 3
INTERNATIONALIZATION ........................................................................................................................................... 3
INTERNATIONALIZATION THEORIES ............................................................................................................. 11
NEO CLASSICAL PERSPECTIVE ON FIRMS ...................................................................................................................... 11
ECONOMIC APPROACHES ........................................................................................................................................ 12
BEHAVRIOURAL APPROACHES .................................................................................................................................. 20
POLITICAL AND LEGAL ENVIRONMENT ......................................................................................................... 29
BUSINESS ENVIRONMENT ........................................................................................................................................ 29
POLITICAL AND ECONOMIC SYSTEM ........................................................................................................................... 31
GOVERNMENT INTERVENTION ................................................................................................................................. 33
PREVIOUS EU REGULATION AFFECTING FDI ................................................................................................................. 40
EU FRAMEWORK FOR SCREENING ............................................................................................................................. 42
EU NEWLY ESTABLISHED FDI SCREENING FRAMEWORK AS COMPARED TO CFIUS .................................................................. 44
EU FOCUS ON SUBSIDIES .................................................................................................................................. 47
INTERNATIONAL MARKET SELECTION .......................................................................................................... 49
GVCS, GNPS, AND INTERNATIONAL SOURCING ............................................................................................ 82
GLOBAL VALUE CHAINS .......................................................................................................................................... 82
GLOBAL PRODUCTION NETWORKS............................................................................................................................ 84
THE ROLE OF THE SUPPLIER ..................................................................................................................................... 84
GVC IN TRANSITION .............................................................................................................................................. 86
GVC MANAGEMENT AND DEVELOPMENT ................................................................................................................... 89
GUEST LECTURE - EXPORT PLANNING........................................................................................................... 91
VIDEOCASES ................................................................................................................................................ 93
INITITIATION OF INTERNATIONALIZATION .................................................................................................................... 93
,THEORIES OF INTERNATIONALIZATION ........................................................................................................................ 95
MARKET SELECTION ............................................................................................................................................... 99
SALES MANAGEMENT ........................................................................................................................................... 100
FOREIGN INTERMEDIATE OPERATIONS METHOD ......................................................................................................... 101
GVCS, GPNS AND INTERNATIONAL SOURCING .......................................................................................................... 102
,INITIATION OF INTERNATIONALIZATION
Whether and when to internationalize?
In pre-internationalization
stages, SME managers use
information to achieve
enough relevant knowledge
to initiate internationalization.
This figure illustrates the
different stages
International expansion
INTERNATIONALIZATION
Why do firms internationalize?
- In the end, it is always about growth and profits
How so? Seek markets
- Literature on internationalization often assumes that sales-oriented objectives are the
most relevant
- The primary motive for starting activities in a foreign country is frequently the access
to new markets and the sales potential offered by foreign markets
But
- More firms import than export, on average
- (but not in all countries, regions, industries? See further)
, SMEs in Europe: Export
In Belgium the % of SMEs that
export is 24% (1/4 is thus
internationally active)
The smaller the country you are
based in, the more likely you will
internationalize
SMEs in Europe: Import
More countries import than export. In
Belgium the % of SMEs with import
is 45%
Reasons
- Components are cheaper
abroad
- Better quality
- Availability
Why do firms internationalize?
- Foreign activities can also be taken up with the objective of giving the firm access to
relevant resources (resource seeking)
o Such as natural resources (like agricultural produce, raw materials, ...),
o But also to parts and components from foreign suppliers,
o Low cost labour
è Efficiency seeking = companies go abroad to lower the costs associated with
performing economic activities
o And high skilled labour and knowledge (technology)
è Strategic asset seeking for R&D and innovation = companies go abroad to
obtain strategic assets (tangible or intangible)
Two main motivations that you internationalize
- Market seeking = companies go abroad to find new customers
- Resource seeking = companies go abroad to access resources that are not readily
available at home or can be obtained at a lower cost abroad
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller yentevdb1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.35. You're not tied to anything after your purchase.
