Abstract
Internationalization processes of transnational corporations are found to emerge in a stepwise manner. Companies commit themselves through a gradual learning process. Information costs and search costs as well as perceived risks are higher in international than domestic investments (Caves 1982:68-73). Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment more and more, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Wiedersheim-Paul 1975): Casual evidence on other source countries confirms the general impression that the bulk of their foreign investment go where the transactional and information-cost disadvantages are least: Japan to Southeast Asia … Australia to New Zealand … Sweden to neighboring European countries and the United States … France to French-speaking lands and adjacent European countries (Caves 1982:64).
Original language | English |
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Title of host publication | Global Business |
Subtitle of host publication | Asia-Pacific Dimensions |
Editors | Erdener Kaynak, Kam-Hon Lee |
Place of Publication | London |
Publisher | Taylor & Francis |
Chapter | 4 |
Pages | 78-102 |
Number of pages | 25 |
ISBN (Electronic) | 9780429772306, 9780429430213 |
ISBN (Print) | 9781138366619 |
DOIs | |
Publication status | Published - 2018 Oct 26 |
Subject classification (UKÄ)
- Business Administration