Podcast
Questions and Answers
What is the primary goal of the Ghana Export Promotion Authority (GEPA) in this scenario?
What is the primary goal of the Ghana Export Promotion Authority (GEPA) in this scenario?
Which theory can explain how the local firm can establish relationships with foreign buyers and partners?
Which theory can explain how the local firm can establish relationships with foreign buyers and partners?
What is the main focus of the stages theory in the context of international trade?
What is the main focus of the stages theory in the context of international trade?
Which of the following is a potential benefit of using the network theory to increase the firm's international trade?
Which of the following is a potential benefit of using the network theory to increase the firm's international trade?
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Why is it important for the local firm to understand the international market environment when using the stages theory?
Why is it important for the local firm to understand the international market environment when using the stages theory?
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Study Notes
Export Agenda Development for Local Firms
- The Ghana Export Promotion Authority (GEPA) has engaged an expert to create an export agenda for a local firm aiming to expand its enterprise globally.
The Stages Theory Approach
- The stages theory posits that firms go through a series of stages in their internationalization process.
- The stages include: no regular export activities, export via independent representatives, establishment of an overseas sales subsidiary, and finally, establishment of a global network.
- According to the stages theory, the local firm should start by developing an internal capacity for export, then progress to establishing a sales subsidiary abroad, and eventually build a global network.
The Network Theory Approach
- The network theory, on the other hand, views internationalization as a process of developing and maintaining relationships with other firms in the network.
- The local firm can increase its enterprise on the international market by establishing and leveraging relationships with key partners, such as suppliers, customers, and competitors.
- The network theory approach emphasizes the importance of social connections, trust, and cooperation in achieving internationalization goals.
Comparative Analysis
- Both the stages theory and the network theory can be useful in explaining how the local firm can increase its enterprise on the international market.
- The stages theory provides a more linear and gradual approach to internationalization, while the network theory offers a more dynamic and relational approach.
- The choice of theory depends on the firm's specific context, resources, and goals.
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Description
Explore the strategies for a local firm to increase its international market presence using the stages theory or network theory, with a focus on the Ghana Export Promotion Authority (GEPA).
