Alongside their domestic market, many companies are increasingly active in foreign markets and expand their business through internationalisation. The internationalisation of companies is a phenomenon which has long been empirically assessable and which has clear effects on the total performance of a company. The estimated share of export of the Gross Domestic Product (GDP), for 2007 (The World Bank 2010), was 12.1% in the U.S.; in Great Britain 26.4%; in France 26.5%; in China 39.7% and in Germany as much as 46.9%. Companies in countries with developed export orientation often present export shares (percentage of foreign turnover against the total turnover) of over 50% and more. For example, the export share of the German engineering federation for 2009 was over 70%. The type and manner of foreign operation has shown to be particularly critical to success in foreign business (Thiel 2007): in terms of the market operation, e.g. through partnerships with distributors, international license agreements, management contracts, local sales companies or subsidiaries in the foreign market.
KeywordsGross Domestic Product Foreign Market Mode Strategy Market Entry Mode Switching
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