ABSTRACT
The Financial Times of December 29, 1983 stated that, 'For American and European drug companies the pressures are aggravated by stiffening competition from the Japanese who have targeted the sector as a crucial one for international growth. Traditionally strong in antibiotics, the Japanese are moving into many other therapeutic areas'. The important characteristic of the process has been found to be a gradual one, and not the result of strategy but the consequence of incremental adjustments to the changing conditions of the firm and its environment. Most of the Japanese pharmaceutical companies have been no exception to the theory. They have been achieving their internalionalisation gradually and are at the stage of licensing. Yamanouchi started its internationaiisation by exporting gradually and steadily increasing its commitments to foreign markets. The literature indicates that this is mainly due to management's uncertainty caused by lack of knowledge and experience in foreign markets.
