ItIM

Cross-border activities go along with

- knowledge and skill problems (techniques, language, law)

-behavioural problems (culture)

-coordination problems (limited rationality)

-formulation of strategies

-design of management systems

-implementation of management tools

in order to:

-deal with different national contexts and challenges in an integrative way

-take advantage of international opportunities

-respond to international threats

-any company that engages in business functions (mainly downstream activities)

-beyond its domestic borders

-on a regularly and not neglectable basis (strategic importance)

-> qualitative concept

-large and small companies

-differs from MNCs that are based on FDI

-to seek global opportunities

-to keep an eye on global competition

-to react on competitors

-additional sales

-cost advantages

-demand for specific resources (natural resources, knowledge)

-strategy (interdependencies to other factors; offensive or defensive motives, e.g. attacking competitors in their home market)

Internationalization Motives are devided into internal or external and proactive or reactive factors

-Managerial urge

-growth and profit goals

marketing advantages

-economies of scale

• risk diversification
• extnd sales of a seasonal product
• excess capability of resources

• foreign market opportunities
• change agents (e.g. state owned export promoters)