ABSTRACT
The importance of exports in the international isation of business service firms was illustrated in the previous chapter. However, it was found that those firms which depended solely upon exports for their overseas revenue were relatively small in size measured in terms of domestic turnover. As business service firms expand they tend to use a variety of modes of foreign market servicing, with the establishment of a permanent presence in overseas markets becoming the preferred method of intemationalisation. As noted in Chapter 4, business service firms may be able to establish an overseas presence at a relatively low cost, and consequently, such firms may engage in FDI at an early stage in their international development. Furthermore, independent exports may give rise to risks and uncertainties which can be eliminated when such transactions are internalised with in the boundaries of the firm.
