By Africa Ariño, Pankaj Ghemawat, Joan E. Ricart (eds.)

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In terms of methods, Kuemmerle adopts a more narrow view and looks at resource allocation processes. He finds that characteristics of international process are determined by intrafirm context and motives of international expansion. Martinez, Esperança and de la Torre (Chapter 4) remain broad, and emphasize management and organizational processes as critical factors in the internationalization process, focusing on one particular geographical area (Latin America). In this setting, they compare organizational and management processes used by emerging multinationals ‘Multilatina’ companies (ML) with those employed by established multinational corporations (MNCs).

And J. Vahlne (1977) ‘The Internationalization Process of the Firm: A Model of Knowledge Development and Increasing Foreign Market Commitment’, Journal of International Business Studies, 8, 23–32. Johanson, J. and P. Wiedersheim-Paul (1975) ‘The Internationalization of the Firm: Four Swedish Cases’, Journal of Management Studies (October), 305–22. Ricart, J. , M. J. Enright, P. L. Hart and T. Khanna (2004) ‘New Frontiers in International Strategy’, Journal of International Business Studies 35(3), 175–200.

And international trade is still the simplest form of international expansion. Establishing and maintaining a cross-border network of manufacturing and R&D sites is less simple. It is much more complex and costly than international trade because the firm needs to create a dense mesh of intra-firm connections among different units to make such a network fruitful (Bartlett and Ghoshal 1989; Doz and Prahalad 1991). Yet, many costs of doing business on an international scale have decreased substantially over recent years.

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