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Five Stages of International Development - Essay Example

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Running Head: STAGES OF INTERNATIONAL DEVELOPMENT Name: Tutor: Course: Date: University: As time goes by well established organizations experience growth and change as well. There is a common course taken by all businesses as they spread their wings internationally to the rest of the world…
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Five Stages of International Development
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Five Stages of International Development

Download file to see previous pages... Phase number one is usually called Domestic Company. A business is regarded as a domestic company if its business operations are solely carried out in the nation where it originates. Its commodities are set for domestic market and the sourcing of factors of production is also domestic. A typical domestic company, thus, makes no dealings beyond its nation of origin’s boundaries. It, therefore, follows that such a business’ management is the easiest and domestically emanating challenges would also be resolvable with minimal effort. (Dlabay, et al, 2010 p263) Anaren Company befitted this description in year 2006. (forbes.com, 2006) The second phase of international development is Exporting Company. This business type has dependence upon the home-market merits like reputation as it opens wings to the external markets. Its major focus is on sales of its familiar commodities in a small number of foreign markets. Exporting businesses rely on their independent agents in the management of their operations in the foreign or even utilize distributors to do the same work. This is due to the fact that agents and distributors alike know the abroad based market places and thus success can be achieved through them with more probability. An example of a business in this stage is the Goscinski Enterprises which exports food commodities in three nations. ...Download file to see next pagesRead More
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