Busm 1222 International Business Marking Rubric For Essay

Busm 1222 International Business Marking Rubric For Essayhow Does Int

Analyze how international business achieves its internationalization objectives in the contemporary context.

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International business plays a critical role in the global economy, facilitating the dissemination of goods, services, technology, and capital across borders. The pursuit of internationalization objectives involves strategic expansion into foreign markets, leveraging global opportunities, and navigating complex international environments. In the contemporary context, achieving these objectives requires a nuanced understanding of various factors including cultural differences, legal frameworks, economic conditions, and technological advancements.

To understand how international business fulfills its internationalization objectives, it is essential to examine the theoretical underpinnings that guide international expansion. These theories include the Uppsala Internationalization Model, which emphasizes incremental foreign market entry; the Eclectic Paradigm, which highlights ownership, location, and internalization advantages; and Porter’s Diamond, focusing on national competitive advantages. These frameworks help elucidate why firms choose specific markets, modes of entry, and strategic approaches.

Firstly, firms adopt incremental internationalization strategies aligned with the Uppsala model, which suggests that companies typically expand gradually, gaining experiential knowledge and reducing risk. For instance, a multinational corporation (MNC) might initially enter nearby or culturally similar markets through exporting, then invest in joint ventures or wholly owned subsidiaries as confidence and expertise grow (Johanson & Vahlne, 1977). This staged approach allows firms to adapt products and marketing strategies effectively while managing resource commitments.

Secondly, the Eclectic Paradigm (Dunning, 1980) provides insight into why firms invest abroad. It posits that firms export, license, or establish subsidiaries based on ownership-specific advantages such as proprietary technology, location-specific factors like market size or resource availability, and internalization benefits to safeguard assets. Contemporary firms leverage digital technology to overcome traditional resource constraints, facilitating faster and more efficient international expansion (Ghemawat, 2007).

Thirdly, Porter’s Diamond framework explains how national comparative advantages influence internationalization. Countries with favorable factor conditions, demand conditions, related and supporting industries, and competitive firm strategies tend to attract foreign direct investment and stimulate export activities (Porter, 1990). Multinational firms strategically locate operations in countries where these advantages align with corporate strengths, thereby optimizing their internationalization efforts.

Technology has dramatically transformed the international business landscape. Digital platforms enable real-time communication, e-commerce, and supply chain integration, reducing barriers to entry and increasing speed to market. For example, e-commerce giants have quickly expanded their reach into emerging markets, leveraging digital payment systems and logistics networks to achieve rapid growth. Such innovations facilitate the accomplishment of internationalization objectives by enabling firms to adapt swiftly to local market conditions and consumer preferences.

Moreover, globalization has intensified competitive pressures and created more diverse opportunities, prompting firms to pursue international markets actively. Regulatory environments, trade agreements, and geopolitical considerations significantly influence decisions and strategies. Companies often employ market research and risk management tools to navigate these complexities and optimize their global footprint.

In conclusion, the achievement of internationalization objectives by firms in the contemporary context hinges on the integration of theoretical insights with practical strategies. Incremental expansion models, resource-based advantages, and national competitiveness theories inform decision-making processes. Technological advancements and globalization further empower firms to expand efficiently and effectively. Successful international business strategies are characterized by adaptability, cultural intelligence, and strategic resource allocation, enabling firms to meet their global objectives in an increasingly interconnected world.

References

  • Dunning, J. H. (1980). Toward an eclectic theory of international production: Some empirical tests. Journal of International Business Studies, 11(1), 9-31.
  • Ghemawat, P. (2007). Redefining global strategy: Crossing borders in a converging world. Harvard Business School Press.
  • Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm—A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32.
  • Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, 68(2), 73-93.
  • Rugman, A. M., & Collinson, S. (2009). International Business. Pearson Education.

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