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Describe how it has become multinational by progressing through 2 or more stages of Jacoby’s 6 stages of multinationalization.
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Google, inc. describes how it has become multinational by progressing through 2 or more stages of Jacoby’s 6 stages of Multinationalization.
The stages of organization’s evolution in the international stage for becoming multinational organization is first of all the organization will start exports of the goods and services because it involves low commitment of capital and in turn low risk and return. Export is the legitimate transportation of domestic or nationalized goods and services from a country intended for use or consumption rendered abroad. Exports can be any good that is shipped out of a government’s border for commercial purposes.
Thus exports are the first stage and the final stage is multinational ownership of organization.
The Six Stages of Multinationalization are:
Stage 1. Exports its products to foreign countries
Stage 2. Establishes sales organizations abroad
Stage 3. Licenses use of its patterns and know-how to foreign firms that make and sell its products
Stage 4. Establishes foreign manufacturing facilities
Stage 5. Multinationalizes management from top to bottom
Stage 6. Multinationalizes ownership of corporate stock
http://www2.hawaii.edu/~dspears/tim303/ch5s.ppt.
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