Companies of all sizes should expand in order to capitalize on growth opportunities which may exist beyond the confines of their national borders . Microsoft, coca-cola, general electric, shell all have significant worldwide operations. Internationalization the process by which firms become more engaged in international markets two broad internationalization (foreign market expansion) strategies: Mode of entry an institutional arrangement by which the firm will enter the foreign market ex. There are 2 reasons to drive a firm to internationalization proactive | reactive. These theories have attempted to explain the rationale for firm internationalization as well as the pattern of internationalization based on developed country multinationals. The firm"s experiential knowledge is the major driver of its patterns of internationalization. Stages: indirect exporting/licensing direct exporting foreign sales. Subsidiary local assembly foreign production; criticized for it linear approach some firms may skip stages. Firms expand abroad to capitalize on ownership, location and internalization advantages.