Internationalization Report: An Analysis of Definitions and Theories

This report provides an analysis of internationalization, focusing on definitions and theories. It examines various viewpoints from scholars and authors, assessing the impact of globalization on business productivity, the role of internationalization in enhancing operational efficiency, and the importance of adapting to changes in international business. The report evaluates key theories, including the Uppsala Internationalization theory, which emphasizes the significance of global business and market knowledge. It also explores the Network Perspective Theory and the Transaction Cost Theory, highlighting their impact on international business operations and cost considerations. The report concludes with a synthesis of the analysis, offering insights into the complexities of international business strategies and market dynamics.

Internationalization

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................1
ANALYSIS.................................................................................................................................................1
Evaluation of international definitions.....................................................................................................1
Evaluation of international theories.........................................................................................................1
CONCLUSION...........................................................................................................................................2

INTRODUCTION
The present analysis is based on analysing the patterns, relationship, links, similarities
and differences about internalisation of theories and definition. The provided literature review
has been examined thoroughly in order to assess the following interpretation.
ANALYSIS
Evaluation of international definitions
In the modern era, growing business has given rise to new horizons where academic work
presented by different scholars and authors are pertaining to internationalisation. They have
shared different views and thoughts on the basis of which appropriate examination has been
worked out.
According to the views shared by Rundh (2006), the activity of globalization leads to
enhance the productivity of the business firms to the larger extent. They work to gain the
customers base which in turn will leads to provide higher sales and more revenues. In similar
fashion, through the definition provided by Masum and Fernandez (2008), the perspective of
internalisation has been understood in different way is that companies are involving in gaining
higher growth perspective with the aim of working out the adjustments of operational functions
where involvement of business entrepreneurs in business activities at cross border level is to
foster higher efficiency and effectiveness in terms of enhancing organisation’s efficiency and
growth factors for strategy formulation, decision making abilities and improvement in various
areas such as research and development, innovation etc. However, on analysing the broader
perspective of the thoughts of Johanson & Vahlne (1977), it can be sources out that doing
business at foreign level is to work on international business activities thro0ugh dynamic manner
that is related to adaptation of change through all levels.
Evaluation of international theories
With regards to study made by various scholars and authors in provided literature review,
it has been analysed that The Uppsala Internationalization theory highlights the significance of
conducting business working at international level. Along with this, with the rising market
commitment and market knowledge which are gained through global business helps in raising
the standard of operations and services of the business enterprise. Thus, the stated theory is
beneficial in extent to meet the suitable flow of export and import between two nations. Another
1

theory named as Network Perspective Theory has been studied and have been analyzed on
ground of fostering relationship at cross border level through the internationalization. This is
effective on account of shortening the gap that abandons the entry of new markets in the
domestic country. Transaction Cost Theory has been evaluated as the next theory where focus is
made on costs aspect. According to the study made by various authors with regards to this
theory, it has been determined that international business operations are way to increase costs. It
provides a platform which the help of which frequency of transaction increases thereby leads to
enhance the key points which are considered for accomplishing objectives of successful
intervention of international business.
CONCLUSION
Hence, through the study of entire literature review, effective analysis and interpretation
had been made. The provided viewpoints of different authors and scholars proved helpful in
presenting the work of analysis appropriately.
2