The Process of Internationalisation of PRC Multinationals

The objective of this paper is to examine the internationalisation process of PRC multinationals. This process relates to various stages through which a company may pass as it develops into foreign markets, normally beginning with (a) indirect/ad hoc exporting; moving on to (b) active exporting and/or licensing; and (c) active exporting, licensing and joint equity investment in foreign manufacturing; finally arriving at (d) scale multinational marketing and production (Franklin R. Root, 1987). A multinational is defined as a firm with an output of goods or services originating in more than one country (Casson, 1982; Buckley, 1989).