International Strategy: Establishing a Global Impact
An international firm is involved in significant activities abroad (outside its home country) and has substantial transactions with foreign organizations. This definition seems necessary, but not sufficient to pinpoint international enterprises, which take part in complex foreign activities. There are two main ways of identifying an international firm: quantitatively, and qualitatively. The former approach uses mathematical ratios such as the Foreign to Domestic Sales Ratio, or the Foreign to Total Employees Ratio to provide an observable, objective number summarizing the degree of internationalization of the corporation. The latter method (qualitative) provides more context and explanation. Within the qualitative analysis, there are two frameworks you can deploy to understand an international firm: EPRG, and IMGT.