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Internationalization and Competitive Catch-Up Processes

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INTRODUCTION "Global interdependence is pervasive. It is not only political and military....[but] also environmental....Perhaps the most important aspect of interdependence however is economic."(Terpstra, 1993, Preface).In recent times, many companies, with varying motives, take the step to establish themselves abroad. Perhaps the local market is saturated, presence in a certain country grants access to strategic resources or there are cluster effects to be explored in a specific region. The decision makers of the companies that are becoming international have different experiences and are in different situations which influence their decision to take the step into the international market. Internationalization readies a company’s product and services for global markets and ensures it can be localized easily. Products that are internationalized often must be localized to fit the needs of that country's users. For example, an internationalized software program would need to be localized to display the date as November 28 for use in the United States and as 28 November for use in England.
LITERATURE REVIEW
Internationalisation is defined as developing networks of business relationships in other countries through extension, penetration and integration (Johanson & Mattsson 1988). According to Masum, & Fernandez (2008, p. 11), internationalization is the process of availing good and services to markets that are outside the country of origin or the country where the good are manufactured or the location of the company. In internationalizing, a company must be in a position to deal with the rules and regulations that have been put in place in foreign countries that they operate in addition to showing the ability to deal with the fluctuation of the currency and the conflicting policies (Bell, Crick, 2004, p. 43). Political situations of the country and the labor

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