Internationalization in general and the internationalization of Essay

Internationalization in general and the internationalization of Universities in particular - Essay Example Both will continue, with firms increasing globalisation by responding to changing macro and operational markets to increase both efficiency and profits. The primary globalisation drivers are the loss of barriers between nations, allowing new trading relationships to develop and change driven by technology. During the early stages of globalisation, companies actively made the decision to globalise, and did so in small steps. It is now assumed that all firms will globalise unless they have a good reason not to (Yip, 2001, p.358). One of the main reasons for globalising, is the increasing rate of change in technology, especially the Internet. Even the smallest organisation can trade globally as long as they have an appropriate web site and can set up the appropriate supply chain for delivery to the customers. Yip also identified three main forms of multinational companies (MNCs): internationalist, federalist and global maximiser (ibid, pp.359-362). The federalist is the traditional MNC. The global maximiser uses pure strategy when formulating growth plans. For an SME deciding to internationalise, the internationalist strategy appears most suitable. An internationalist strategy is used by a company with a secure position within its home market/nation. Foreign activities are opportunistic rather than strategically planned and intended. The test, according to Yip, is whether or not the company could survive purely on the revenue and profit streams of the domestic business (ibid, p.359). This would also be an appropriate approach for a university seeking to expand overseas for the first time, although the use of the Internet and well-constructed, culturally appropriate learning materials with well-trained teaching staff might negate the need to physically expand overseas at all. Kaarna (2010) makes use of the internationalisation framework when considering whether â€Å"different theories for explaining the accelerated internationalisation† (p.556). He found, a s part of his initial investigations, other researchers’ work, undertaken in 2000-2003, identified two ways that enterprises attained international status by either starting as a global company or using multiple market entry modes simultaneously (ibid). Surprisingly he also identifies a study that found the use of theoretical models in peer-reviewed articles was evident in only 18% of them (32 out of 179 papers) (ibid, p.557). His research revealed that, despite its age, the internationalisation framework still held, some 34 years since its identification by Johnson and Vahlne in 1977 (ibid, p.560), although it is qualified by indicating that some of the underlying assumptions had changed, with new ideas being added based on other theories and models which, Kaarna claims, have enhanced â€Å"the understanding of [the] accelerated internationalisation phenomenon† (ibid). Other aspects affecting the increasing extent and pace of globalisation, are increasing amounts of i nvestment from companies seeking to set up operations in different countries. Restrictions are being reduced and/or removed to facilitate this, increasing the abilities of nations to import and export required goods and services (Hill, 2011, pp.12-13). Trade barriers have also been progressively reduced, although there are often threats of imposing tariffs and quotas when nations disagree with policies and approaches of other nations, resulting