ABSTRACT
The paths businesses take to international markets have been subject to a great number of studies over the years. This chapter discusses different explanations of the internationalisation process of businesses. Insight into this process helps us understand how the firm is better able to exploit and develop its resources and competencies in international markets. The chapter focuses on mechanisms that lead the firm to seek international market opportunities and how information and experience form the bases for decisions. Bakka was among the first to describe an internationalisation model in phases – from what he termed trial export, via extensive and intensive export to international marketing. Franchising entails the handover of the rights to exploit the commercial value of a business system and/or trademark. This strategy is being deployed at an increasing pace in international markets, often in service industries.
