Question

3. (a) What has Sunton done to proceed with the process of internationalization? (b) Are there other options besides establishing a second factory in Cambodia to improve internationalization?

Answer 1

Sunton has done to proceed with the process of internationalization.

Internationalization describes the process of plotting products to meet the needs of users in many countries, so they can be easily adjusted to achieve the goal.

Sunton uses the Uppsala model for internationalization. It presents a consecutive approach, meaning that the internationalizes gradually.

The model assumes that there is a absence of knowledge of the foreign market which is harmful to internationalization. Therefore it suggests that a firm should firstly start itself in its domestic market, and then grow its commitment and resources in the target country in stage.

Other options for Cambodia to improve internationalization.

1. Indirect Exporting.

2. Direct Exporting.

3. Licensing.

4. Franchising.

5. Other contractual modes of internationalization.

6. Acquisation and Establishment of a firm by its own.