Business Commons^™

Foreign Country Priorities In The Internationalization Process: A Measure And An Exploratory Test On British Firms, Timothy Adrian Robert Clark, Derek S. Pugh

Research Collection Lee Kong Chian School Of Business

After a critical analysis of the psychic distance aspect of the Uppsala model of internationalization and empirical studies to test it, this paper proposes a measure to enable comparison between target foreign countries in the priority given them in the internationalization process. An International Priority Index is developed for each target country, and used as the dependent variable in a model to analyze the effects of the independent variables of size of market, affluence of market, geographical distance and cultural distance on foreign country priority choice of home country firms. The measure and the model are given a first test …