inostrani kapital kao faktor razvoja zemalja - Ekonomski fakultet u ...

• New development trends are stimulating international business activities of
internationalization of banks and other financial institutions activities, like
Citibank and Morgan Guaranty.
• Multicultural and multinational management teams also strengthen
development of international operations
• Companies which decide to take part in international market game may
choose one of two concepts for internationalization of their activities:
• gradual internationalization
• simultaneous internationalization or globalization
Maximization of economies of scale is achieved by using gradual
internationalization and creation of competitive advantage; and maximum use of
market opportunities is achieved by used of simultaneous internationalization.
Gradual internationalization
A concept of gradual internationalization is incremental process and it
implicitly assumes that foreign markets are different from the host one. Moreover it
is assumed that foreign markets are isolated, with competitors on one being
independent from competitors on other markets. Such concept is the same as a
concept of international and multinational competition in strategic management
literature.
A concept of international competition implies that there are no incremental
markets, with a group of independent national markets. Competition is
multinational when the battle on one national market is independent from
competition led on the other national market.
Good example of gradual internationalization is so called "Scandinavian
model" where internationalization is viewed as a learning process. In this model
companies do not enter all the markets at the same time, and they gain knowledge
and experience on one foreign market before they enter the other one.
Scandinavian model implies that foreign markets are different from the host, with
many similarities. Only in that way the experience from one market may be used in
the others. Scandinavian literature emphasizes gradual internationalization. This
model has five stages in development of international company (4, p. 38):
1. Company exports their products to foreign markets through distributors
2. Exports becomes more important activity and company opens branch on a
foreign market
3. International company begins with foreign investments, spreading their
activities from only trade to production in own factories on foreign market
4. Further growth of FDI and establishment of parent company on foreign
markets
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