The Uppsala Model

1.Introduction There is an abundance of models and theories which describe and explain internationalization, foreign introduction modes and the foreign operations of trustys (Elo, 2005). These models can be divided into two different perspectives: behavioural and economic (Elo, 2005, p.65). It is also suggested that the literature ground on economic theory, which focuses on new market opportunities, internationalization, plumb integration and corporate growth, has been dominating. Whereas, behavioural related theories refer to a firms social and organisational side. The strain environment has changed considerably in terms of technology such as the internet, business practices, theoretical advances and the reduction of trade barriers due to globalisation, which have exclusively provided new methods of working. But what is internationalization? Internationalization in political economy is viewed as a process of increasing involvement of firms in international markets (Susman, 2007). Whereas globalisation refers to the increase in global transaction of people, cultures and economic activity, it is this increase in relations that facilitates a firms internationalization process. As already stated in that respect are many theories which try to explain the internationalization of firms.

This rise evaluates the Uppsala model as an explanation for internationalization, and contrasts the model with the literature on born global firms and the network model, which are behavioural theories. ? 2.The Uppsala exercise The Uppsala Model is a stages theory developed by (Johanson & Vahlne, 1977) the manikin explains how firms proceed towards internationalization. Their research was a longitudinal case breeding involving four Swedish firms who were already established aboard. The 1977 model suggests that firms incline to internationalize in logical steps first to countries that are psychically close, this does not necessary mean close in nautical miles but close in psychic distance. The firms then... If you extremity to get a full essay, order it on our website: Orderessay

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