Internationalization is an increasingly popular strategy for companies looking to expand their business activities beyond their domestic markets. However, the motives for such a decision can vary significantly. In this blog post, we will delve deeper into the various motives for internationalization and their impacts on companies.

• The motives for internationalization can broadly be categorized into two types: economic and non-economic motives.
• Economic motives are typically driven by the desire for growth and security, while non-economic motives aim at image, power, and influence.
• Within economic motives, there are defensive and offensive motives. Defensive motives arise when a company seeks to stabilize its position in the domestic market or follows a competitor who has already entered a foreign market. Offensive motives, on the other hand, are justified by competitive advantages.
• Resource-oriented, production-oriented, and sales-oriented motives also play a significant role in internationalization. Resource-oriented motives are driven by the need to secure raw materials at lower costs, while production-oriented motives aim to leverage a comparative advantage in other countries. Sales-oriented motives aim to achieve specific quantities or values through sales in foreign markets.
• From an organizational perspective, the motives for internationalization can also be classified as proactive or passively reactive. Proactive motives focus on internal goals and strategies of a company, while passively reactive motives are influenced by external events.
  
  In practice, however, the motives for internationalization may deviate from the above, and companies may also have a combination of motives driving their decision to internationalize.
  
  Overall, internationalization projects are driven by a variety of motives that determine the market entry process, timing, and subsequent actions in foreign markets. It is crucial for companies to carefully examine their motives and goals before pursuing an internationalization strategy. This way, they can ensure that their internationalization efforts are aligned with their overall business strategy and objectives.