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GSM Lecture 3Management > Global Strategic Management > Methods of internationalisation > Factors > OLI Framework > Uppsala model
Uppsala modelThe Uppsala model (1977) is a stage-wise model. Firms follow the internationalisation process in stages, i.e. they do not engage in FDI straight away: it is unwise for a firm to rush into foreign markets. The typical process begins with domestic production, which leads to exports, which leads to FDI. Vernon (1966) and his product lifecycle explains the widening and "where" of FDI. However, today many firms are "born" global, and all firms are different, affecting each other in different ways and each internationalising at a different rate. This also applies to each part of the value chain, which internationalises at its own individual rate. In either case, the lack of knowledge is a fundamental aspect of decision-making with regards to internationalisation.
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