The process of Internationalization of a Firm has been a wide-spread subject of research over the last many years. The technological revolution, responsible for free exchange of information across countries, formation of new trade blocs like the EU, WTO, etc., resulted in firms expanding their markets across borders.
The process of Internationalization of a firm has been a wide-spread subject of research over the last many years. The technological revolution, responsible for free exchange of information across countries, formation of new trade blocs like the EU, WTO, etc., resulted in firms expanding their markets across borders. These firms were either purely domestic or non-existing a few years ago.
This phenomenon was first noticed in a research undertaken in Australia by McKinsey & Co. Ltd., jointly with Australian Manufacturing Council in 1993. Their aim was to understand the reasons behind the quantum leap taken by Australian export growth rate in the manufacturing sector in the late eighties and early nineties. In this study, McKinsey found small to medium sized companies competing (and in some cases winning), almost from their inception, against global successful giants. These companies commenced exports within two years after being established. However, exports contributed about 76% of their sales almost immediately. |
