This study aims to test the Uppsala Internationalisation model and one of its crucial elements, the concept of psychic distance. The evidence is drawn from a Chilean multinational Business to Business manufacturing company, AJ Ing which has gone international since 1997, 14 years after its inception. The Uppsala model and the concept of psychic distance are discussed and explored as well as other relevant literature. This is followed by a computation of psychic distance between Chile and some of the countries AJ Ing is established in, as well as Kenya where it seeks to establish itself soon. Interviews were then conducted with the Assistant Director of Operations at the company in order to give insight into the company's internationalisation process. The results show that the Uppsala model was followed to some extent. The internationalisation was done in incremental steps and after gaining knowledge and experience, but the notion of psychic distance played a minor direct role in the process.

<p>The pressures of increased foreign competition can persuade a company to expand its business into international markets. In most cases, the motive is a search for improved cost efficiency or looking for the chance to expand and achieve growth. Swedish firms often develop their international operations in small steps rather than by making large foreign production investments at single points in time. Typically firms start exporting to a country via an agent, later establish a sales subsidiary, and eventually, in some cases, begin production in the host country. Such process was called Uppsala Model or Internationalisation Stage Model. The aim of this thesis is to investigate whether Uppsala Internationalisation Model apply to transition market such as Poland. The year 1989 was an important turning point in the history of the Polish economy. After a long period of isolation to the Western world, Poland opened its boarders not only for visitors and tourists, but also for foreign companies. Many of them have invested in production in Poland during the transition period. One of the Swedish investors present in Poland almost from the beginning of the transition process is Scania. Scania holds fourth position in the world in manufacturing trucks and buses, and the second place in Europe in sales of heavy trucks. Poland as a transition market attracted Scania for many different reasons such as market size, geographical location and future growth perspectives. Company's activities confirmed the assumption that Internationalisation Stage Model can be applied to transition country and can explain MNE's initial steps in the unknown environment.</p>

<p>The purpose of this thesis is to study the establishment process of Swedish companies with sales in China, but who did not begun their establishment with sales. This thesis has examined H&M, Nordic Light and Fagerhult; three Swedish companies that recently started selling on the Chinese market, to see how their establishment chain differs from those suggested by the dominant internationalisation theories, Uppsala Internationalisation Model and the Export Behaviour Model. To study this alternative establishment chain, this thesis has interviewed representatives from each company. The results show that the firms have entered China primarily for sourcing reasons and then at a later stage set up a sales organisation thereby differing from the Uppsala Internationalisation Model’s Establishment Chain. This thesis’s establishment chain of the researched companies in China show that they have started with purchasing, then moved on to production for export, and then finally to sales.</p>

The pressures of increased foreign competition can persuade a company to expand its business into international markets. In most cases, the motive is a search for improved cost efficiency or looking for the chance to expand and achieve growth. Swedish firms often develop their international operations in small steps rather than by making large foreign production investments at single points in time. Typically firms start exporting to a country via an agent, later establish a sales subsidiary, and eventually, in some cases, begin production in the host country. Such process was called Uppsala Model or Internationalisation Stage Model. The aim of this thesis is to investigate whether Uppsala Internationalisation Model apply to transition market such as Poland. The year 1989 was an important turning point in the history of the Polish economy. After a long period of isolation to the Western world, Poland opened its boarders not only for visitors and tourists, but also for foreign companies. Many of them have invested in production in Poland during the transition period. One of the Swedish investors present in Poland almost from the beginning of the transition process is Scania. Scania holds fourth position in the world in manufacturing trucks and buses, and the second place in Europe in sales of heavy trucks. Poland as a transition market attracted Scania for many different reasons such as market size, geographical location and future growth perspectives. Company's activities confirmed the assumption that Internationalisation Stage Model can be applied to transition country and can explain MNE's initial steps in the unknown environment.

The purpose of this thesis is to study the establishment process of Swedish companies with sales in China, but who did not begun their establishment with sales. This thesis has examined H&amp;M, Nordic Light and Fagerhult; three Swedish companies that recently started selling on the Chinese market, to see how their establishment chain differs from those suggested by the dominant internationalisation theories, Uppsala Internationalisation Model and the Export Behaviour Model. To study this alternative establishment chain, this thesis has interviewed representatives from each company. The results show that the firms have entered China primarily for sourcing reasons and then at a later stage set up a sales organisation thereby differing from the Uppsala Internationalisation Model’s Establishment Chain. This thesis’s establishment chain of the researched companies in China show that they have started with purchasing, then moved on to production for export, and then finally to sales.