Business

Please
In part two
I do not see any reference could writer
Could explain more in reference

Internationalization can promote learning and the accumulation of the knowledge skills and capabilities that SMEs need to survive and prosper (Zahra, Ucbasaran and Newey, 2009).  Using the research literature, evaluate the ways in which international activity can benefit SMEs.

Introduction
The process of internationalisation was only previously performed by large and established firms.  However, internationalisation now represents a common practice of SMEs (small and medium-sized enterprises).  Owing to competitiveness within the domestic market increasing, the opportunities and benefits of internationalisation have encouraged SMEs to become established at the global level.

Internationalisation improves an SMEs capabilities, enabling these firms to sustain and maintain their competitiveness within the market as a whole, whilst facilitating innovative ideas EXAMPL, fEor instance we take into account the idea of making a globalized economy in which all the SMEs processes (receiving deposits and forwarding advances and loans) can be integrated that will produce a unified  system, S which had previously been very limited within the domestic market.   Knowledge is also improved by internationalisation   for example, the world wide web enables SMEs to obtain marketing intelligence of international markets and to ascertain growth patterns.

Consideration of networks with the internationalisation of companies is of paramount importance because a strong network will help the SME to overcome its crisis situation easily. BECAUSE.   Considered herein are various types of network relationships which may be employed for the purpose of foreign market entry, with the intention of entering the overseas selling place.  Further provided is an elaboration of the impact which results from network relationships on (foreign)international market entry, and the entry mode choice of knowledge-intensive SMEs for entering into foreign market (into foreign markets), through the formation of relations which are networked for the market entrance.  Network relationships thus have a huge benefit to SMEs, through improved learning learning because improved learning will help them in generating new ideas that can help them in facilitating business processes (receiving deposits and forwarding advances and loans).BECAUSE

YOU NEED TO MENTION IMPROVED SKILLS
Network relationships
Literature details numerous studies which consider the significance of network relationships and internationalisation behaviour of companies. We can see that when SMEs develop a network of relationships, either with its competitors or customers, or with the government, SMEs learn from them about the latest updates that are occurring in the  marketEXPLAIN HOW NETWORK RELATIONSHIPS BENEFIT SMEs (1 SENTENCE).  Coviello (2006) details that network relationships amongst companies or individuals determine the degree of internationalisation.  This is particularly evident with those SMEs requiring engagement with small and medium-sized businesses, in those regions which demand a great deal of knowledge (Coviello, 2006).  The initial incremental internationalisation (II) models (Luostarinen, 1979) are generally contrasted by such studies.  SPECIFY WHAT THE II MODEL IS.  Such contrast is provided, for example, through suggestions that a network model of internationalisation Isis able to provide improved explanations regarding the internationalisation behaviour of SMEs requiring a great deal of knowledge. HOW
When considering networking and its importance in enabling SMEs to expand their business..(PUT IN A REFERENCE, AND RELATE TO THE BENEFITS FOR SMEs.) Other the literatures (Coviello  Munro, 1997 Zain  Ng, 2006) suggested that network relationships provide an important effect upon the knowledge-intensive market and entry mode choice of SMEs SMEs the benefits are the same as we have already discussed in the previous heading.RELATE TO THE BENEFITS FOR SMEs.  Coviello  Munro (1997) and Zain  Ng (2006) further suggest that network relationships of companies represent the beginning of the internationalisation procedure, in which the companies expand their networks to markets abroad.  This is consistent with the network model, which states the existence of networked associations is of benefit to SMEs by possibly assisting in the creation of a bridge, which connects companies with foreign markets.

Literature considering knowledge-intensive SMEs generally focuses on the manner in which SMEs can enter into a market, and the possible modes of entry available.  RELATE The benefits can be seen whenTO THE BENEFITS FOR SMEs  SMEs or companies normally enter into the markets (either closely located markets or distant markets) through developing either formal relationships or informal relationships. RELATE TO THE BENEFITS FOR SMEs Should one consider how knowledge-intensive SMEs enter into a physically distant market, one may conclude that they are actually forced to do so, and enter into distant markets for tactical reasons, helping them in gaining new. (DISCUSS BENEFITS FOR SMEs) untapped international markets.  Therefore, proper clarity is lacking as to the type of network relationships which might exist, and whether these have undergone operationalisation, which occurs when a company enters physically distant markets. This shows the benefits for the SMEs, they can enter in the markets fro better profitably and maximization of revenue  RELATE TO THE BENEFITS FOR SMEs.

The need for strategic management
A strategy represents the view of an organisation over a long time horizon.  During such time, business plans align resources with challenges.  The most important factor in developing the strategy is effective analysis of the changing environment.  During uncertainty, the strategy serves as a foundation for decision making.  A fundamental issue which arises when building a strategy, which is international in nature, is its scope.  The strategy should possess the broadest scope to inculcate the relative dynamism, which will affect the business internationally in the long run (Allen, 176). REFERENCE
Strategic management is important for achieving a clear vision of the future, directing integration and coordination of activities.  One aim of coordination is to eliminate national and international company conflicts significantly international business strategy helps in effectively responding to complex, uncertain and competitive business environments (Allen, 177).   I ADVISE DELETING THIS SECTION, IT IS IRRELEVANT TO THE DISCUSSION.

Scope of international expansion
Through the diversity present in geographical location, the potential exposure of SMEs toward a rich variety of environmental settings and data exists,exists the diversity benefits the SMEs in learning new competitive techniques PROVIDING BENEFIT TO SMEs THROUGH..  There further exists a wider global scope which can allow companies to attain a greater number of opportunities for leveraging their strategic resources, whilst at the same time reducing market risks through diversification.  Through foreign sales, an increase in SMEs returns from innovations can be brought about, resulting in improved returns on investments made in research and development.  Should firms be able to attain access to several markets, promotion of innovation through a decrease in risks, with a commensurate increase in probable returns may be achieved.  Ogbuehi and Longfellow (1994) suggest with companies gaining more and more data regarding foreign markets by means of the collected experience, such companies gain a greater commitment toward internationalisation and further development.  It is through such development that innovation occurs.

The positive relationship between the overseas market scope and activities which are innovative in nature, fails to shed light on how the scope of foreign markets can used to develop products which are more innovative.  The association between the overseas market scope, and the innovative product, lies within the concept of creating knowledge, experiences and learning.  When SMEs operate in a completely different external market, an increased opportunity for SMEs to learn from a variety of settings, ideas, experiences, and events is presented.  The operation of SMEs within different regions exposes these SMEs to a much broader scope of foreign market, thus enabling them to materialise the experiences accumulated, and utilise knowledge which spreads across numerous businesses and institutional settings.  These two factors help SMEs in two ways firstly, they are engaged in continuous learning and secondly, they employ their learned knowledge to develop a rich structure of knowledge (Zahra et al., 2000).  As soon as SMEs commence building warehouses of knowledge structures based on their learning and experiences, the load on cognitive processing is decreased this ultimately allows SMEs to concentrate more on that information which is more unique and novel in nature.  This further enables SMEs to recognise opportunities in the foreign market for new product development.
When internationalising SMEs diversify in more than one country, they are faced with a number of challenges.  One challenge consists of identifying the needs of clients, which represents a new testing ground of the SMEs product.  It is then necessary to generate new skills by activating ideas, best practices and solutions within the SME (Argyres, 1996).  When SMEs engage in obtaining and absorbing knowledge which areis contrasting in nature, then one can only state that these firms are able enough to identify the needs of customers.  Apart from obtaining diverse information regarding customers need, SMEs also practice methods which can provide a competitive edge in various products (Lane et al., 2006).  Should the decision be taken in a very short span of time, then it means the firm is quite small in size, the nature of operations is centralised, and the owners are the decision makers.  The benefit for the SMEs lie in making such a decision that is not only profitable in short run, but also lucrative in the long runRELATE TO THE BENEFITS FOR SMEs.  Very rapidly, decisions are able to be executed, which can implement strategies to capture overseas markets, making it relatively straightforward for decision makers to apply rapidly intelligence which has been learned in business functions.

Since internationalised SMEs are involved in performing operations in multiple countries, the double looping concept allows SMEs to revise their existing assumptions regarding methods regarding how to carry out business.  EXPLAIN WHAT THE DOUBLE LOOPING CONCEPT AND DOUBLE LOOP LEAPING ARE IT HAS ALREADY BEEN DEFINED IN THE ABOVE .WithLINE. With the help of double-loop leaping, SMEs are able to question their assumptions and revaluate their existing business practices.  This process of revaluation is of benefit to SMEs since it will possibly develop new solutions, ideas and products in solving customers problems and identifying their needs. The customers have some explicit needs and some latent needs. The process helps in identifying what the customer actually wants. ELABORATE.

A wide overseas market scope of an SME can easily affect the innovation of products when they are exposed to a more diverse network of information the SME acquires knowledge from multiple countries and is able to develop new products. Different people from different countries help in generating numerous ideas. This helps the SME to pick out the best idea that is profitable for the organization  ELABORATE.  Contrary to this, there may be certain drawbacks in the pursuit of leaning from diverse sources of information.  For example, a very wide international scope may challenge the attention of the managers, since they have to learn from geographically distant places.

Market conditions
The markets for SMEs are mostly characterised by the instability factor.  SMEs must react quickly to threats encountered and opportunities presented SMEs must do so, in order to maintain minimum levels of profit which will help maintenance of liquidity and avoiding solvency (INSOLVENCY).  SMEs which are lacking in size, may encounter a severe problem in meeting the demands of customers and suppliers (Ahokangas, 166-165).  I ADVISE DELETING THIS SECTION, IT IS IRRELEVANT TO THE DISCUSSION.

Various networking approaches for accessing overseas marketplaces
During the 1980s, the network model was presented at a time when majority of the companies were using different types of networks for the facilitation of their internationalisation activities. RELATE TO THE BENEFITS FOR SMEs  During such time, effectively two incremental models were presented, the Uppsala model and the network model. The Uppsala Model assumes gradual process SPECIFY WHAT THE UPPSALA MODEL IS.  A network model assumes no gradual progress occurs.

Incremental internationalisation models fail to account for physical distance, or the (number of) nationsintended nations in which a company wishes to diversify into.  Rather, the concept presented in the incremental internationalisation models is that internationalisation bears a relation with the setting up and construction of relationships. Studying these models will help us in relating benefits for SMES RELATE TO THE BENEFITS FOR SMEs.

Johanson and Mattsson (1988) detail that a firm has a dependence upon the resources which are under control of the other companies. The SME can only benefit if it learns the technique of how to effectively utilize the resources even if they are out of their reach. RELATE TO THE BENEFITS FOR SMEs  The question thus arises how a firm utilise those resources which are actually under the control of other firms.  The simple answer is that such a firm can access such resources through development of the position it possesses within a network.  The firms must establish relationships with other firms in that network then, companies appear to have a mutual interest in the development and maintenance of relationships with one another, in a manner which facilitates shared advantages for all company members of the network. IT HAS ALREADY BEEN DEFINED HOW TO BENEFIT FROM DEVELOPING MUTUAL INTERESTS RELATE TO THE BENEFITS FOR SMEs.

To further consider the internationalisation of a company under this model, one may consider another model detailed by Johanson  Mattsson (1988) which specifies internationalisation occurs at that time the company initiates a relationship with another company, with the latter company lying within a network of another nation. This creates a sense of mutual belongingness among the SMEs. The first being the company who have all the resources at its disposal, the later is the company that can learn from the accomplishments of its former SME and can utilize the resources of its former SME too. RELATE TO THE BENEFITS FOR SMEs  New markets have a bridge generated, in the form of relationships amongst companies of various nations.  There can be active or passive establishment of such relationships, with the other companies present within the market.  The seller takes the initiative in active networking, whilst in passive networking, and the converse applies with the buyer taking the initiative (Johanson  Mattsson, 1988). This can be a benefit for the SMEs in a sense that the companies who are thorough in active relationships can negotiate with government about the policies easily, whereas the passive relationship builder can benefit from participating in the buying pattern analysis.

RELATE TO THE BENEFITS FOR SMEs
Many studies have emphasised that active learning is necessary for learning, knowledge acquisition and foreign expansion (Gabrielsson, Kirpalani, Dimitratos, Solberg,  Zucchella, 2008 Gilmore, Carson,  Rocks, 2006 Loane  Bell, 2006.  Loane  Bell (2006) detail that should a company not possess appropriate network relationships, that company can nevertheless take an active role in the relationship of the network, and can still play (maintain) a dynamic responsibility and construct novel associations for facilitating its market entry. This highlights the importance of active networking of SMEs. The SMEs can hugely benefit from active networking. Active networking will help the SMEs can build contacts with their market and non market stakeholders. RELATE TO THE BENEFITS FOR SMEs   Passive networking results from some other actor taking an initiative.  The actor may be the customer, importer, intermediate or supplier who possesses the ability of opening novel opportunities within foreign markets. The passive networking is also a benefit for the SMEs as it helps them in realizing new ideas from its market or non market stakeholders. In active, SMEs were building novel ideas, in passive SMEs are getting ideas from its related stakeholders.  RELATE TO THE BENEFITS FOR SMEs  From experimental results related to internationalisation of knowledge-intensive companies, such companies contain an increasingly passive part in networking, owing to them being led to foreign markets due to current networks. Thus the above models depict how SMEs can develop relationships in international markets. THE BENEFITS HAVE ALREADY BEEN DEFINED ABOVE IN ACTIVE AND PASSIVE NETWORKING.  SPECIFY WHAT THE BENEFITS TO THE SME ARE.

Note that SMEs do not necessarily follow the theoretical stage of internationalisation model, with SMEs working on different operational activities.  The common model followed by SMEs in the internationalisation procedure consistmodel followed by SMEs in the internationalisation procedure consists of four stages the domestic stage, the inward stage, the outward stage and finally the cooperation stage.  By understanding the model, one is able to ascertain the relationship between the firms international orientation, and its dependence on externally available resources (Ahokangas, 83-84). If the SMEs follow this four staged model, they would easily identify at each step what possible problems and opportunities lay for their business. RELATE TO THE BENEFITS FOR SMEs

Usage of various network relationships for the purpose of accessing external markets
Consistent with the network model of internationalisation (Johanson  Mattsson, 1988), a company may possess relationships with various actors, which include consumers, competitors, non-profit organisations, suppliers, allocators and public administration.  There are three types of network relations necessary in order to enter into foreign markets, comprising of formal, informal and intermediary network relations.  RELATE TO THE BENEFITS FOR SMEs  Nevertheless, literature considering relations which have developed from the various types of network relationships can be contention.  For example, Birley (1985) suggests that formal relationships possess a relation with economic resources which can be accessed, whilst informal relationships possess a reference to the contacts existing amongst other business actors, colleagues and relatives. If the SMEs identify which type of relationship is existent in their company, then they can easily materialize their resources in generating profit. RELATE TO THE BENEFITS FOR SMEs  On the other hand, Dubini and Aldrich (1991) suggest that extended (formal) relationships consist of relations amongst workers of those companies who particapteparticipate in boundary-spanning, whilst personal (informal) networks possess a relation with each of the persons who are able to interact with the entrepreneur themselves.

The benefit for SMEs lies in allowing a larger contribution of employees in networking. If more employees participate in boundary spanning, then the SME can generate new ideas for its business.  RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME ARE
Despite the contention in literature, agreement does nevertheless exist within literature concerning actors  regardless of relations which are formal with the business actions amongst two or more actors within the network, informal relationships seem to consist of more than two actors inside the network.  Furthermore, the informal relationships are described as those which posses a personal relationships between relatives and colleagues. RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME AREThe benefit for SMEs lies in empowering the informal relationship on a more personal level and can drive the SMEs towards more learning.

Along with various studies of formal and informal relationships, many other studies exist e.g. Ellis  Pecotich, 2001 Havila et al., 2004 Oviatt  McDougall, 2005 which consider mediator relationships accompanying informal and formal relationships.  RELATE TO THE BENEFITS FOR SMEs .  In intermediary relationships, there is an absence of direct contact between the customer and the seller.  Nevertheless, an actor exists for facilitating the setting up of a network relationship between the buyer and the customer.  RELATE TO THE BENEFITS FOR SMEs .  Oviatt and McDougall (2005) propose that such brokers are able to offer relations amongst actors within various markets, and as a result, commence with global business actions amongst the seller and buyer.  SPECIFY WHAT THE BENEFITS TO THE SME ARE THE BENEFITS ARE DISCUSSED FROM HERE Therefore, it can be affirmed that in order to penetrate into the new market, the focal networks can be segmented and grouped together by the type of formal relationships, namely by an intermediary relationship and by an informal relationship.  Formal relationships are useful in referencing with the actors belonging to the business class.  Intermediary relationships are vital for connecting the seller and buyer though a third party or a middleman.  Informal relationships are further significant since a social connection is formed with relatives and colleagues.  This must be borne in mind when SMEs are developing international strategies for expanding business.  SPECIFY WHAT THE BENEFITS TO THE SME ARE

The effect of network relationships on marketplace accessibility
The network model of internationalisation considers neither geographical nor physical space as hindrances to a firm to entering into a foreign market furthermore, the model does not consider these factors responsible for the selection of a foreign nation for expanding business. .  RELATE TO THE BENEFITS FOR SMEs On the other hand, numerous studies consider the internationalisation of knowledge-intensive SMEs.  WHAT IS A KNOWLEDGE-INTENSIVE SME  EXPLAIN WHY KNOWLEDGE-INTENSIVE SMEs ARE RELEVANT TO INTERNATIONALISATIONKnowledge Intensive SMEs are those that depend upon huge data before making any further decision. Thus before entering into global business world, the Knowledge-intensive SMEs will calculate all the pros and cons by collecting data and then analyzing it....  For example, Coviello, 2006 Coviello  Martin, 1999 Coviello  Munro (1995) and Coviello  Munro (1997) Sharma  Blomstermo, 2003 Zain  Ng, 2006 detail that associations attain a physically powerful effect on marketplace or on access-means preference.  These studies possess a uniform opinion that knowledge-intensive SMEs attain both geographically and physically close proximity within marketplaces, by pursuing their current network relationships.  SPECIFY WHAT THE BENEFITS TO THE SME ARE  IT ITSEFLF IS TELLING THAT THE BEENFIT OF KNOWLEDGE INTESIVE SMEs LIE IN THEIR SLEECTION OF SUCH MARKETPLACE WHICH IS MORE CLOSELY LOCATED Studies conducted by Coviello  Munro (1995) and Coviello  Munro (1997) pertaining to New Zealand-based miniature software organizations, lead to the conclusion that an organisations informal and formal network relationships initially provide it with a right of entry into physically close marketplaces, and dictate its method of entrance.  In time, these informal and formal relationships also smooth the progress of market entry into physically distant marketplaces.  These results are consistent with the study of Coviello and Martin (1999), detailing the significant function of informal and formal relationships in organisations primary market assortment, and admission approach preferences to geographically close-proximity marketplaces.  SPECIFY WHAT THE BENEFITS TO THE SME ARETHIS IS AGAIN TELLING THE BENEFIT OF SMEs THAT THERE PREFERENMCE IS BASED ON THE NETWOORK   MoenRELATIONSHIP Moen et al. (2004) and Zain and Ng (2006) detail that entry mode selection is affected by network relationships.  RELATE TO THE BENEFITS FOR SMEs Similarly, market selection of small software firms is also influenced by network relationships, and as a result the internationalisation process of all these organisations in totality, is also influenced.   RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME ARE Moen et al. (2004) further details that undersized software organizations initially internationalise to physically close states later, physical distance has a less influence on the decision making of market selection.  RELATE TO THE BENEFITS FOR SMEs .However, Moen et al. (2004) specify in non-English speaking countries, a more significant role of physical distance is witnessed.  RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME ARETHEY ALL ARE STUDIES... LET THEM COMLETE... AL BENEFITS HAVE ALREADY BEEN DISCUSSED OR WILL BE DISCUSSED. BE PATIENT In contrast, Sharma and Blomstermo (2003) support the argument that network relationships do indeed influence the internationalisation process of knowledge-intensive SMEs, stipulating that entry mode choice is supported by the requirements of the client and the market in question.  SPECIFY WHAT THE BENEFITS TO THE SME ARE This finding is consistent with Bell (1995), detailing that despite small software firms being inclined to internationalise their processes primarily to those nations having a small physical distance, they do so through tracing their customers and utilising acquaintances with overseas clients.  However, the entrance mode choice of such small software firms is comparatively strongly influenced to the intricacy of software products. SPECIFY WHAT THE BENEFITS TO THE SME AREThe example stated above was of a software firm, however if we alter the software firm with SMEs, we can understand that SMEs will have efficient and effective learning if their choice if networking relationship is correct. SMEs will be able to make profit if they are closely located to marketplaces where demand for their service exists.

In literature, some contention exists regarding the utilisation of network relationships by firms, especially when they are penetrating into a new market.  For example, Crick and Spence (2005) detail that despite those firms which are knowledge-intensive being capable of utilising current networks to augment their business functions in current marketplaces, their usage of network relationships is nevertheless restricted to a limited extent, but only until the entrance into a new market. RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME ARE This finding is consistent with Bell (1995), stating the network model of internationalisation is capable of describing the internationalisation process of firms possessing no network contacts to specific marketplaces.

SPECIFY WHAT THE BENEFITS TO THE SME ARE Zain and Ng (2006) also consider knowledge-intensive SMEs and their market entry strategies, which are more associated to available opportunities that are originally generated by the aid of network relationships, rather than with the strategic judgments of managers.  RELATE TO THE BENEFITS FOR SMEs .  SPECIFY WHAT THE BENEFITS TO THE SME ARE In contrast, Loane and Bell (2006) explain that should firms not possess adequate network relationships, such firms can actively work to build fresh contacts which will ultimately make it easier to enter into a new market. SPECIFY WHAT THE BENEFITS TO THE SME AREIn the above few literature we found that SMEs can still benefit, irrespective of whatever networking relationship are having.

In summary, literature details that the type of network relationship greatly affects the manner in which knowledge-intensive SMEs enter markets.  SPECIFY WHAT THE BENEFITS TO THE SME AREThe major benefit for the SME is that it can easily identify whether this market is suitable for its business or not. The commonly accepted principle is that such organisations are found to have been pursuing their informal or formal relationships to close-proximity markets.  Despite studies (Bell, 1995 Sharma  Blomstermo, 2003) opposing this view, the selection preference of a market entry is usually witnessed as a result of these network relationships. SPECIFY WHAT THE BENEFITS TO THE SME ARE

Conclusion
Johanson  Mattsson (1988) detail that the network model of internationalisation is valid to a certain degree, clarifying the internationalisation of knowledge-intensive SMEs to a limited extent.   SPECIFY WHAT THE BENEFITS TO THE SME AREThe benefits of the SMEs lie in the selection of the best model. The most appropriate model will help in developing effective relationship with the international market and thus expanding the profit base.  Other studies (Bell, 1995 Coviello, 2006 Coviello  Martin, 1999 Coviello  Munro (1995) N.E. Coviello and H.J. Munro, Crowing the entrepreneurial firm Networking for international market development, European Journal of Marketing 29 (7) (1995), pp. 4961. Full Text via CrossRefCoviello  Munro (1995) and Coviello  Munro (1997) Crick  Spence, 2005 Sharma  Blomstermo, 2003 Zain  Ng, 2006) explain to a certain degree the common model of admission, whereby organisations pursue their informal and formal network relationships,  facilitating entry into physically close markets.  SPECIFY WHAT THE BENEFITS TO THE SME ARETHE FACILITATION INTO PHYSICALL CLOSE MARKET IS THE BENEFIT FOR THE   HoweverSMEs However, these studies lack explanation regarding how and which role the network relationships play, when an organisation attempts to enter into a distant marketplace to offer their products.   SPECIFY WHAT THE BENEFITS TO THE SME ARETHE ABOVE STATEMENT IS HOWING A DEMERIT, WE CANT SHOW a   Presentlybenefit presently, the point to ponder is that whether network relationships have an influence maintain organisations accesses physically distant markets. SPECIFY WHAT THE BENEFITS TO THE SME ARE

The present Contribution supports the network model of internationalisation (Johanson  Mattsson, 1988) by identifying the transformation which is occurring in the networking activities during internationalisation behaviour of knowledge-intensive SMEs.  SPECIFY WHAT THE BENEFITS TO THE SME ARE  As literature details (Bell, 1995 Coviello, 2006 Coviello  Martin, 1999 Coviello  Munro (1995) N.E. Coviello and H.J. Munro, Crowing the entrepreneurial firm Networking for international market development, European Journal of Marketing 29 (7) (1995), pp. 4961. Full Text via CrossRefCoviello  Munro (1995) and Coviello  Munro (1997) Sharma  Blomstermo, 2003 Zain  Ng, 2006), both  existing informal and formal network relationships represent the reasons why firms are driven towards geographically or physically close marketplaces.   SPECIFY WHAT THE BENEFITS TO THE SME ARELET THE LITERATURE   ExistingCOMPLETE existing informal and formal network relationships further explain the reason for organisations being more inclined towards selecting their primary markets and entry modes, by obeying their network relationships.  SPECIFY WHAT THE BENEFITS TO THE SME ARE  Nevertheless, the present Contribution details that knowledge-intensive SMEs most probably, first select the intended country when entering distant marketplaces, and then the entry mode without any pressure of networking partners.  SPECIFY WHAT THE BENEFITS TO THE SME ARETHE SELECTION AND ENTRY MODE IS THE BENEFIT  Following this procedure, they then either commence developing new relationships, or utilise current relationships to attain market access. SPECIFY WHAT THE BENEFITS TO THE SME ARETHE ATTAINING STRATEGY IS THE BENEFIT FOR THE   ThereforeSMEs Therefore, a market entry and entry mode choice, to a physically distant market, is more of an end product of strategic causes, rather than that of initiation by network relationships. SPECIFY WHAT THE BENEFITS TO THE SME ARETHIS IS THE CONCLUSION. WE CANNOT ADD DENEFITS IN IT

Does the international business theory covered in Part 1 help you understand the business world
International business consists of business and transactions arising from both private and governmental organisations, in addition to originating from more than one nation.  International business represents an important topic to study owing to international business forming a huge and expanding section of all worldwide business activities.   In the present age, every company is affected by international occurrences and competition due to most companies selling their yield to suppliers from abroad, attaining suppliers from abroad, or competing against items and facilities which have originated from foreign nations (Coviello, 713-731, 2006).

At the present time, major elements of global business development consist of a rising propensity for those types of economic activity which are synchronised by collaborative activities within international companies, instead of through market exchange.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDIt helped me in understanding the common practise of companies that is they achieve their goals by collaboration. In this (IN WHAT)the above statement an economic logic has been offered, through the recognition of transaction costs representing a hindrance in the face of efficient employment of a price mechanism for the coordination of global business activities.  The logic helps one to understand the procedure of internationalisation as it occurs inside companies on a general basis, and in particular within international companies (Coviello, 713-731, 2006)

Should one wish to understand the internationalisation business strategy, one must consider export and import philosophies.

WHYIT IS EXPLAINED IN THE NEXT STATEMENTS Moremore firms engaging in certain types of global business are beginning to participate in export and import transactions, in comparison to the other types of business transaction.  Several globally renowned businessmen (LIST NAMES)WE DONT HAVE THE NAMES, who are considered as gurus, present the argument that the procedure of exporting represents a rational endeavour, and possesses a natural framework.  Export may mainly be viewed as a procedure consisting of several steps through which the target nations setting may be understood taking advantage of a suitable marketing mix, development of a marketing plan which has its basis using that mix, the implementation of the plan by means of a tactical strategy, and lastly, making use of a control procedure for the ensuring of the adherence to the strategy (Luostarinen, n.p, 1979)A regular review and evaluation of such an exporting procedure, and of alterations effected to use the mix, is essential for considering market alterations which have resulted in increased competitiveness.  The global business gurus suggest the majority of international business theories bear a relation to the actual businesses.  Those firms which have an international basis and consist of international ambitions, do seem to be undergoing changes which greatly depend upon the fulfilment of the specific needs of nations (Loane, 467-485, 2006) PUT IN A REFERENCE.  HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDTHE LAST SENTENCE IS SHOWING MY UNDERSTANDING FOR YOUR QUESTION

The simplest view (OF.) consists of the market exchange procedure.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDTHE UNDERSTANDING IS BEING EXPLAINED IN THE NEXT STATEMENT. This view often results in the generation of major transaction expenses for the parties involved.  However, the view is decisive in nature, and determines the type of substitute arrangement which would lead to the provision of an extremely efficient alternative to the pricing mechanism.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLD It is actually known that there exists a large range of institutional arrangements, which have been adopted by various communities, for the organisation of their economic actions.  With the passage of time, the view has been that increasing market transactions on one hand, and internationalisation within the company on the other, represents a simple dichotomy of economic substitutes.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDLET THE EXAMPLE COMPLETE For instance, in the 1980s, global business activity saw an increasingly rapid expansion of complicated business alliances, which frequently led to the emergence of corporate galaxies(Casson  Cox, 42-53, 1993).

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLD A corporate galaxy occurs when a large TNC (transTrans national coorrporation) PRESUMABLY YOU MEAN CORPORATION NOT CO-OPERATION is linked to a cluster of smaller TNCs and national firms by means of joint ventures, sub-contracts and marketing agreements.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDIt remains that nowadays the businesses are becoming more and more integrated in their operations Dunning (PUT IN A REFERENCE)REFERENCE IS MISSING, NOT AVAILABLE considered this novel orientation of international businesses, stating, The multinational enterprise is now increasingly assuming the role of an orchestrator of production and transactions within a cluster, or network, of cross-border internal and external relationships which may or may not involve equity investment, but which are intended to serve its global interests (Casson  Cox, 42-53, 1993).

(PUT IN A REFERENCE)I THINK IT IS DUNNING, I HAVE MISPLACED.  HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLD These various types of networks of independent companies and clusters are emerging owing to this, Dunning has called for a reappraisal of thinking regarding the type, operation and limitation of companies and markets, and according to his suggestion, it has led to doubting the value of certain current organisations of economic activity (Casson  Cox, 42-53, 1993).

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDThis helps in understanding that despite of the corporate galaxies, and the benefits that it derived, there still exist certain limitations as discussed above.

The assumption of the traditional economic theory arises from members of the business community possessing an inherently selfish trait methods such as companies concentrating upon profits also represent an intrinsically selfish endeavour.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLD In instances when no limitations exist, selfish agents tend not to be fair with each other.  For example, a trader may not pay his partner although in the case of both the partners using such behaviour, it is clearly a self-defeating exercise.  This is commonly referred to as the Prisoners Dilemma.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDLET THE EXPLANATION COMPLETE Such a situation may be resolved by means of legal contracts, although such contracts may be financially draining.  In the case of legal sanctions not being sufficient, one person cannot trust another.  It is through such a situation that transactions costs are accrued, which represent a measure of losses arising, owing to an absence of trust.  The implicit assumption of the majority of economic analyses of transaction expenses is that of a low-trust setting parameter.

Continuous trade may lead to a reduction in transaction expenses through rising trust, but only with reduction to a certain extent.  Should the transaction be embedded in a longer sequence, and should one transaction be defaulted, prejudice of further transactions which would have led to the provision of future trade will result.  Had the default not occurred, collaboration might have been the result.  Enlightened self-interest has resulted in a generation of increased trust (Zain, 183-205, 2006).
Such self-interest is very probably applied in situations when economic agents belong to very small communities possessing a constant membership level, and operating in close proximity, which would result in recurrent interactions.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDThis shows that the businesses that are closely located will have a much higher level of trust in their transactions. Nevertheless, it would be taking a risk were this mechanism to be relied upon.  For example, there may be changes in circumstances there may be splitting up of communities with members moving to another location, resulting in the undermining of the trust the only solution to this outcome is the novel arrangements which are being ventured.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLD Furthermore, there is impairment of the flexibility of the mechanism, resulting in the delay of implementation of an alteration.  A strengthStrength of the mechanism, however, is that continuous trade does not serve as a single basis for collaboration.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDLET THE STATEMENT COMPLETE There may be some efficiency found in altruism.  Traditional economics usually treats altruism as a deviation from the usual selfish trait, with a variation existing solely within the family unit (Zain, 183-205, 2006). .  However, altruism can also result in efficiency for a company.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDLET THE STATEMENT COMPLETE Aa company can be said to be a social group actually several companies have been based upon a family unit.  Altruism may also exist within the normal markets the explanation for this is that altruism has very frequently filtered towards people, when an agent is interacting with them directly.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDThis helps us in understanding the dual aspects of self interest and altruism. There also exists a natural human trait to instigate appropriate physical contact with others it is no coincidence that a handshake represents a ubiquitous sign which seals an agreement (Zain, 183-205, 2006)..  Altruism might exist within companies, in addition to markets.  Altruism existing to a greater degree within companies, as opposed to within markets, provides another reason for explaining internationalisation as a firm consisting of a further incorporated social entity, rather than just a united ownership entity.  Should altruism be responsive to conditions, the possibility exists of altruism being manipulated.  Should one be able to unlock the altruistic response, it is possible to elicit an altruistic response from another.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDTHE ABOVE STATEMENTS ARE ADVISING US THE PROS AND CONS OF ALTRUISM... LET THE STATEMENT COMPLETE Clearlyclearly, there is a requirement of reciprocity in this situation for instance, a gift usually leads to a response.  This can be explained by the concept of mutually dependent preferences all people possess an intrinsic desire of complementing activities with others, who have also been performing the same activities.  Tactical management by both parties, of obstacles, may be employed for the engineering of trust. Some people possess a better understanding of altruistic response compared to others.  Persons may exist who possess a specialisation in the process of eliciting responses, for instance, by increasing devotion, by means of emblematic sacrifices in situations which represent an aim of the community.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDThis reflects that in business world no one does anything just for social purpose. There are some expectations too. If a company is doing corporate social responsibility, then it would definitely be looking for good customers response. Such a leadership method represents a substitute for law.  Inside the company, such leadership leads to substitution of the enforcement of the contract of employment, leading to a reduction in agency expenses through the eliciting of impulsive attempts, plus loyalty on the part of the worker.  Inside a market, such a leadership method represents a substitute for business dealings being enforced legally, leading to a reduction in transaction expenses through the discouragement of traders acting unfairly with fellow members within the community.  In each of these cases, trust exists amongst communities, even if there is no application of formal sanctions to defaulters.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDThis helped me in understanding that trust is vital for creating trust on both ends, the customers end and the corporate worlds end. There is no occurrence of default when collaboration is not reciprocated there is an infliction on the defaulters of an emotional penalty of guilt or shame on their own self.  A mechanism of values, which lead to sustenance of impulsive collaboration in situations of a lack of recourse to legal sanctions, is recognised as being a culture possessing much trust, representing an alternative to lawful endorsements (Ojala, 145-144, 2008).

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDIt helped me in understanding the reciprocal relation that exists in collaborative activities of the business world.
Another important matter consists of the development of the firm, plus the significance which networking and interaction hold.

HOW DOES THIS HELP YOU UNDERSTAND THE BUSINESS WORLDLET THE STATEMENT COMPLETE Whenwhen interaction occurs amongst firms and institutions, the gain of commercial benefits of an international market results.  Similar components or subcontractors may be used for networks, who can easily share research and development costs work within similar governmental structure may also occur.  Evidently, when one views businesses forming a trade block possessing an absence of internal hindrances, one may argue the businesses are actually producing their own self-made networks.  Alliances in vehicle manufacture, engineering and aerospace have all resulted in a large sponsorship program for the sum development of the outlook of a country or a group of countries, which mostly relies on their own internal market networks (Ojala, 145-144, 2008).. HOW DOES THIS

HELP YOU UNDERSTAND THE BUSINESS WORLDTHIS HIGHLIGHTS THE HIGHLY INETEGRATED RELATIONSHIP THAT EXISTS IN the business world. The companies are eager to utilise the resources of their collaborative partner. The approach of interaction and network towards internationalisation depicts the capability of affecting decisions, when one gains an understanding of methods employed by worldwide network members used to play, work and interact.  For instance, The Middle East represents one of the vital market networks. Middle Eastern countries are well known for their wealth, diversified marketplaces, along with an all-embracing cultural heritage despite a harmonisation process during the past few years, diversity still exists.  Other countries can learn from the experience of Middle Eastern countries, by restructuring strategies when entering into an overseas market.  However, it must be considered that countries in the Middle East region possess an economic characteristic of a low-income average, and above all, they prefer for their cultural differentiation to be accepted.  Thus only those firms which recognise their individuality and develop products as per local need will be successful in capturing that market.  Regrettably, few firms have realised the significance of acting adequately when strategic decisions are needed, with regard to entering these types of marketplace.