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What is firm de-internationalisation? Is de-internalisation always a bad decision? Why?

Marketing Dec 28, 2020

What is firm de-internationalisation? Is de-internalisation always a bad decision? Why?

Expert Solution

A firm de-internationalization is the process by which a company decides to pull out of an international market due to internal or external circumstances.

De-internationalization is commonly seen as a failure to reach market goals, though in some cases the decision may be made regardless of changes in the business environment. De-internationalization is not always a bad decision. If the business plan has failed for an international market it is best to move on. If a company waits too long to make this decision they may be hurt more long term. It is possible though to keep channels of distribution open or for establishing coverage through a different region if they wish to leave the area and lower the impact of pulling out suddenly.

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