Business In The International Market Question Answers 2022

Running head: BUSINESS IN THE INTERNATIONAL MARKET
BUSINESS IN THE INTERNATIONAL MARKET
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to question 1..................................................................................................................2
Answer to question 2..................................................................................................................2
Answer to question 3..................................................................................................................3
References..................................................................................................................................5

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Answer to question 1
Uppsala’s model incorporates traditional norms for internationalisation. This model is
applicable, where both inception and operation is performed within the national boundary of
a country (Vahlne and Johanson, 2013).
Contrary to this, born global is an emerging phenomenon of internationalisation,
where business start-ups consider establishment in a global market. Their source of revenue is
from the sales in the international market (Cavusgil and Knight., 2015). The crucial point of
difference between these two theories is that the former has a strong base of the customised
product in the domestic market and gradually gain knowledge. Whereas, the latter possesses
an early experience in the world market and deals in standardised products (Moreira et al.,
2019).
Answer to question 2
This is a debatable topic, whether to use the term 'Born global’ and 'International New
Ventures’ interchangeably. Several researchers argue that the topics are different in concept.
Within three years of inception, an organisation under born global starts operating in the
dominant market economies, such as the United States, Europe and Asia (Sleuwaegen and
Onkelinx, 2014). This type of companies originates aiming the world market. On the other
hand, International New Ventures (INV) falls under the category of nationalised
organisations that are concerned with globalising its operations. Unlike the born global, INVs
start evolving at an early stage without external resources (Moreira et al., 2019).
Born global companies start to perform actions right after they are established;
however, they are endowed with relatively low financial assets (Moreira et al., 2019). In
order to expand and acquire the market, they implement developmental and distinctive
strategies. They innovate specialised products using advanced technologies to grab the entire

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market. In contrast to this, INVs are domestic entrepreneurial firms’ aiming to expand its
activities abroad with strategic alliances for proactive start-ups (Gabrielsson and Gabrielsson,
2013). Unlike global born companies, INVs supports the usage of domestic exporters through
their import/export companies and provides opportunities to international traders. Hence, to
conclude, this can be said that, though these two types of organisations share similar
characteristics, yet they are differentiated in terms of practical operations.
Answer to question 3
The author refers to ALPHA as a born global organisation rather than International New
Ventures for its global operation right after inception and scarce financial assets (Moreira et
al., 2019). In order to gather information from ALPHA, the author asked several questions to
the executive chief of the organisation. The data collected are incorporated into the study to
analyse the performance and status of the newly growing company. The key questions are as
follows:
1. The first question for interviewing the executive: What are the driving forces that
induced to adopt the process of internationalisation?
2. Following the first question, the author enquired: What are the different sorts of
strategies adopted for internationalisation of organisation and export/import projects?
3. What are the different steps that are needed to be addressed to gear up with the
problems posed in the path of internationalisation?
4. After interviewing about the general market condition of the company, the author
indulged into internal dimensions of the manufacturing process: What is the kinds of
products produced in the organisation and what are the different flavours of the
product?
5. What is the total rate of the annual production of liquors and sparkling beverages?

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6. What is the yearly revenue from sales of non-specialized products?
7. What percentage of the total production of the final output is exported to the
international markets?
8. What are the diverse forms of the market where trading of goods are performed and
whether it is a dominant economy?
9. What are the categories of production technology used to produce and what are the
fears from this technique?
10. What are the possible ways of combating the risk factors associated with a wide range
of completion from existing firms?
Hence, in conclusion, the author addresses that the ALPHA since its birth has managed to
retain a full growth level. It widely advertises its product through social media. This company
has expertise over producing quality alcoholic and non-alcoholic beverages. However, it is
found that the biggest obstacle in the path of expansion is the presence of tax on alcohol and
alcoholic drinks. Lastly, the author suggests that the firm should prioritise resizing, strategise
to raise global market share without quitting the idea of diversification. The author considers
that being a born global, with superior product dealing in the world market, the company
should continue innovating its product specifications. The author politely reconsiders the
need for hiring specialists to diversify in the probable area to make sustainable and equitable
development (Moreira et al., 2019).

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References
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of International
Business Studies, 46(1), pp.3-16.
Gabrielsson, P. and Gabrielsson, M., 2013. A dynamic model of growth phases and survival
in international business-to-business new ventures: The moderating effect of decision-making
logic. Industrial Marketing Management, 42(8), pp.1357-1373.
Madsen, T.K., 2013. Early and rapidly internationalizing ventures: similarities and
differences between classifications based on the original international new venture and born
global literatures. Journal of International Entrepreneurship, 11(1), pp.65-79.
Moreira, A.C., Ramos, M., Ferraz, L.F. and Martins, D., 2019. The Internationalization
Process of a Born Global: A Case Study of a Beverage Firm. In Entrepreneurial Orientation
and Opportunities for Global Economic Growth (pp. 46-68). IGI Global.
Sleuwaegen, L. and Onkelinx, J., 2014. International commitment, post-entry growth and
survival of international new ventures. Journal of Business Venturing, 29(1), pp.106-120.
Vahlne, J.E. and Johanson, J., 2013. The Uppsala model on evolution of the multinational
business enterprise–from internalization to coordination of networks. International Marketing
Review, 30(3), pp.189-210.