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INTERNATIONAL
ORINATATION
BENSHA C SHAJI
2nd Year B.B.A LLB
Roll. No : 10
Introduction
The degree and nature of involvement in international
business or the international orientations vary widely.
The analysis provided by Douglas Wind and Perlmutter
within the framework of the modified EPRG scheme is
helpful in understanding the levels of involvement of firms
in international business .The EPRG framework identifies
four (4) types of attitudes or orientations towards
internationalisation that are associated with successive
stages in the evolution of international operations.
There are four (4) orientations are
:
Ethnocentric Approach( Home country Orientation )
Polycentric Approach ( Host country Orientation )
Regiocentric Approach( Regional Orientation )
Geocentric Approach( World Orientation )
These stages are assumed to reflect the goals and philosophies of
the company in so far as international operations are concerned and
lead to different management strategies and planning procedures
for International operations .
Ethnocentric Approach
In the ethnocentric approach, overseas operations are viewed as
secondary to domestic operations and primarily as a means of
disposing of ‘surplus’ domestic productions. The top management
views domestic techniques and personnel as superior to foreign
and also as the most effective in overseas markets. Plans for
overseas markets are developed in the home office , utilising
policies and procedures identical to those employed in the domestic
market. Overseas marketing is most commonly administrated by an
export department or international division, and the marketing
personnel is composed primarily of home country nationals.
Overseas operations are conducted from a home country base, and
there is likely to be a strong reliance on export agents.
No international
Ethnocentrism investment
needed
is pre-
dominantly a The domestic
home country companies view
orientation. foreign markets
as an extension
to domestic
markets.
This approach No
entails a additional
minimal risk and selling cost
commitment to incurred.
overseas
markets.
Ethnocentric Orientation Managing
Director
More
Economical Regiocentrism is
and regional
orientation
Manageable
Home
Country
Regiocentric Orientation Managing
Director
C.E.O
Subsidiary
Geocentrism
is global
orientation.
Home
Geocentric Orientation Country
Managing
Director