Summary
When companies engage in international business there are four main reasons influencing: to expand sales, to acquire resources, to diversify sources of sales and suppliers and to minimise competitive risk. Companies internationalise their operations for many different reasons, both general and specific. According to Porter, 1985 cited in Dicken, 1992 there are three competitive strategies: cost leadership, differentiation and focus. According to Dicken, 1992 there are two types of international production, market-oriented investments and supply- or cost-oriented investments.