To what extent do firms follow distinct stages as they internationalise? Draw on relevant theories of internationalisation to develop your answer.

Since the rapid development of globalisation post Second World War, there has been much interest in theories relating to the internationalization of firms. These theories are diverse and varied; attempting to answer both why and how companies become ‘international’. Welch and Luostarinen (1988) defined internationalization as ‘the process of increasing involvement in international operations’ and theories on internationalization were first established in the 1960’s (Hymer, 1960 & Aharoni, 1966) and new theories are still being developed (Buckley and Ghauri, 1999).

This paper will attempt to provide an overview of these internationalization theories, whilst attempting to analyse if firms do follow distinct stages during the process of becoming international. The theories that will be outlined include the development of the mainstream ‘stages’ approach, highlighting the Uppsala Model (Johanson and Wiedersheim-Paul, 1975; Johanson and Vahl...