New VoxEU column on internationalisation modes

A column from Gábor Békés and Balázs Muraközy has been published on VoxEU.org. This article is the outline of the researchers’ recent paper The ladder of internationalization modes: Evidence from European firms, forthcoming in Review of World Economics.

Globalisation has provided firms with many ways to serve their foreign customers and this column suggests that the set of internationalisation modes can be described as a ladder, with the higher rungs associated with higher levels of productivity and innovation. This ladder has three main steps – indirect exports, direct exports and outsourcing, and service and manufacturing foreign direct investment – and may provide an important source of flexibility for managers to adapt to policy shocks.