Absoluted advantage and comperative advantage create the posibity for company to internationalised in order to utilise competence and increase productivity.
Pursuing merchanism : trong thuong
Another reason: the shortage of the resources.
Some model of internationalising:
Upsalla theory: the firm which is majure in domestic market , then spread their development accross the neighbouring countries. The 2 dominant factors is market knowledge and commitment. The process should be Major in internal market -> Open the representative -> Open a join venture -> develop the own manufacture.
Born global:
Niche market -> specialised -> Advance tech -> Expand to global market in a short period of evoluation ( not exceed 6 years )
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