Theories of internationalization build positi...

Theories of internationalization build positivity and strength in the business world

Author Name : Mohammed N Alfaez, Mohammed S Aldhawyan, Mansour S Alharbi, Abdullah A Almudayfir

ABSTRACT

Globalization has made many businesses invest all over the world. There are theories that have been developed to support this idea of business going international by scholars and evaluate how this is possible considering different environments and need for business establishment. The conceptual theories explain factors that may influence the business to go international and outline possible road maps that might be followed in order for an investment to establish and grow internationally. The article aims at reviewing all this literature by different scholars that have contributed knowledge to the business environment. The theories have been studied to determine their effectiveness, applicability of the business models they propose and their contribution to the business ideas. They have been developed by the countries that have experienced rapid industrialization hence the need to expand their business globally. The study concludes that the theories of internationalization are meant to explain the processes by which firms undergo when establishing businesses in other countries.

Keywords: Globalization, business, countries, theories, liberalization, environment, internationally, business model, industrialization, global, conceptual theories, internationalization, economic theories, behavioral, market failure, FDI, licensing, open market, subsidiaries.