The authors however state that these firms face a

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Unformatted text preview: ing 43 million annually. SME’s also face external barriers such as laws and regulations and imperfections to a higher extent than MNC’s (Hollenstein, 2005). Bradley, Meyer and Gao (2006) argue that many SMEs are forced to internationalize, particularly high technology firms, due to a focus on niche markets, shorter product life cycles and, frequently, the small size of their domestic markets relative to the potential that exists abroad. The authors however state that these firms’ face a serious dilemma, should they attempt to internationalize unaided or do they try a form of partnership with stronger firms in their business system that can help them. The authors argue that the primary foreign market entry mode used by small business is exporting, additionally it is argued that this is an effect of exporting offering an effective means of internationalization without over- extending the capabilities or resources of the firm. The authors also stress that small firms often skip some- and/or all of the “internationalization stages” as many firms must be i...
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