Introduction to internationalization of the company

Companies may have different ways to grow, these forms are designated “generic strategies growth” and summarized in three points elementary To understand where this concept is so fashionable nowadays for companies. First we have the expansion of business activity, a company can have and expand different business activities such as the production of men's shoes, production of women's shoes and bags, leather production, as the second item we expansion of the target market, ie a company can choose to focus each of its business activities to a different target market, in these two types of expansion are performed in one country as the company does not perform any operation outside, Finally and most concerns us to understand this concept is the formergeographic expansion or internationalization the company explain that consists of the following points.

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The Business Activity Business in Foreign Markets. In very general terms understand how internationalization as the process of geographical expansion over the years comprising all types of business a company does overseas and which can be initiated and developed through various strategies, the most common being buying and selling in foreign markets. It is important to bear in mind that internationalization does not refer to a type specifically International Business.

Surely many of you will wonder what are the different international business world:

1. We consider the international business Export and no import since imports are products and services that are consumed internally from a different country, Some experts in international business do not consider it as an international business because there is a way out of remittances in the country and there is no access to the outside by the company receiving such imported goods.

2. International Business Cooperation Agreements (NEAR) in Foreign Markets

3. Direct Investments Abroad (IDE)

4. Turnkey projects in foreign markets

So the question I threw for possible reflections is; an internationalized company, Does it have to be exporting?… It is important to understand that each type of international business has a different purpose in the case of the Exportación, your goal is sell foreign markets (buy or import). In the International agreements International Cooperation (NEAR) has as purpose cooperate with a partner, without incorporation of a company and in foreign markets. Concerning Direct Investment Abroad (IDE) has as purpose produce and market by a company or buy up a company with or without a partner in foreign markets.

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Against targets of turnkey projects in foreign markets we talk in more detail below. It is important to bear in mind that for every International Business need a different strategy, and what is strategy? We consider that joint strategy most appropriate decisions to achieve a goal under present conditions, considering that if each international business has an object different characteristics, decisions to be analyzed and take to get it have to be different. So, the strategy will also be different for each international business.

Victor Martin

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