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• Local infrastructure: A country’s distribution systems, transportation
network and communication systems can have a serious impact upon

the decision of involvement.

6.7 The degree of involvement in the international market

According to Doole and Lowe (2008), the key to developing plans for

international market entry is the desired degree of involvement in and
commitment to international markets. That is, considering the extent to

which the company views the international market as a source of future
growth and profits. The degree of commitment to the international market
varies from one company to another, depending on the motive behind the

involvement, and the host country’s environment in terms of political risk
and economic development. The depth of a company’s involvement also

depends on the individual firm’s characteristics: company size, availability
of resources to develop international markets, management attitudes and

entrepreneurship, and industry characteristics such as the structure of
competition and the relative attractiveness of the domestic versus the
foreign market.

6.7.1 Factors determining involvement in international markets

Some companies will prefer a limited type of involvement in the overseas

market, especially when they are not familiar with the demands of the host
country’s customers, which give a high degree of uncertainty. When

management’s attitudes are relatively conservative and concerned with
stability, international objectives are often modest. When the

management’s attitude is ambitious, they may be aggressive and dynamic,
considering market orientation and the attractiveness of international
market opportunities. Company size and resources are the third factor that

influences the degree of involvement. The larger the company, the more
capital it has to enter an overseas market. If it is advanced in information

technology and logistics management, it may develop agencies and
services specialising in international operations. Small and medium-size
companies will also facilitate international expansion. The last factor is the

industry structure: its characteristics and conditions will help to shape