The internationalization process and marketing activities

Abstract

Since the 1960s, many developing countries began a transition from import substitution to more outward-looking industrial strategies. The policy adopted by the Brazilian government during the period 1964-1985 emphasized an increase in the volume of exports with the objective of diversifying export markets and products. Competitiveness helped Brazil become a leading exporter of manufactured goods in Latin America, and this has also helped the country survive the debt crisis. This study addresses the process by which Brazilian firms internationalized their manufactured products. Data were collected from a large sample of firms belonging to the Association of Brazilian Exporters (AEB). Factor analysis was conducted for the purpose of summarizing the information with regard to export marketing dimensions. Included in the analysis were 24 variables encompassing marketing, production, and risk dimensions. Discriminant analysis was used in order to identify the marketing dimensions pertinent to each group at different levels of the internationalization process in export activities. A major conclusion that can be drawn is that export development in Brazilian firms was directed by currency issues and marketing capabilities. Furthermore, the study reveals some important insights into the success of export activities. It appears, that one important aspect of export competency is financial flexibility, i.e., the ability to handle export sales in different currencies. Secondly, assessing the country's external environment is equally important when determining success in export markets.

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