The evolution of internationalization
There have been a variety of different approaches to explain the internationalization of business activities.
They normally concentrate on distinct aspects of the reasons for and results of, enterprises operating in more than one environment and have changed dramatically throughout the last decade.
Whereas traditional theories have focused their attention on the internationalization of production and foreign direct investment (FDI) where the multinational enterprise (MNE) played a central role, recent theories have approached internationalization as a process in which firms increase their involvement in international operations adapting their ...view middle of the document...
(2) The establishment of joint ventures or technological assistance agreements at home. This was frequently seen not only in technologically complex industries such as chemicals and pharmaceuticals, metal, motor and engineering, but also in communications and the food processing.
(3) The establishment of joint ventures abroad. This strategy was implemented in the 1960s by firms such as Ficosa, Indo, Puig, Minersa and Alsa and later on by Marca, Catalana Occidente, Comsa, Esteve, Nutrexpa, Pronovias, Roca, Lladro´ , Campofrı´o, Pescanova and many others.
(4) The acquisition of full control of Spanish-based joint ventures.
(5) The acquisition of foreign firms as a platform for further growth. Spanish publishers and a few food processing and industrial firms adopted this strategy in the 1960s and 1970s. However this only became popular after 1986.
(6) Direct investment by the establishment of productive subsidiaries. Again, we see a few publishers alongside a small number of firms in the food and logistics industries embracing in the 1960s and 1970s a strategy widely implemented by Spanish family firms in the late 1980s.
(7) Strategic alliances. Although pioneered by the insurer Catalana Occidente before the Spanish civil war and then by Puig and Pescanova in the 1960s, this strategy, characteristic of research-intensive industries, spread after Spain’s integration into the EU. We find examples of this in the pharmaceutical and food industries, as well as in engineering and the service
The modern macroeconomic theories of international production addressing the growth of international production have been experiencing a reduction of influence when compared to microeconomic theories due to the reduction of influence of the Product Life Cycle (PLC) model. The technology gap theory is based on the different propensities for learning and innovating experienced between countries and is antecedent of the PLC model. It tries to recognize the importance of technological determinants in international trade. The PLC model, essentially a microeconomic approach, was applied in response to the inability of the trade models to explain the patterns of trade at that time.
One of the most fashionable concepts of today, globalization, is in fact not a product of 20th century. Trade is international since the flint stone trade of Neanderthal human and globalization is a subject of history since first ages. It existed when the Silk Road started in China and reached to the frontier of the Persian Empire and enlarged towards the Roman Empire and during the Roman Empire, the Persian Empire and the Dynasty of China. Another example is the Golden Age of Islam: Early global economy created by Muslim merchants and explorers that ended up with the globalization of crops, commerce, knowledge and technology in the Old World-wide and the times that more integration was achieved along the Silk Road during the Mongol Empire. With the accession of Portuguese and Spanish...