There are 6 stages of internationalization was devised by Jeffrey S. Hornsby & Donald E. Kuratko in 2002. Export is at the first stage of internationalization. It is define as a business of selling and sending products to foreign country by using shipping service. Export reaches a level where an export manager is necessary whereby other HQ staffs handle exporting (Dowling, P.J., Festing, M. & Engle, A.D., SR., 2014). Besides that, export manager need to visit foreign market in order to develop the right strategic choices and also be familiar with the foreign country’s law and regulation. Furthermore, Human Resource staffs who is handling relevant administrative matter need to provide accommodation and meals for the foreigners who came to visit their country. For example, arrange which hotel for them to stay as well as the application of Visa in the home country.
The second stage is sales subsidiary. Sales subsidiaries are located in the foreign market countries which they have invested in the host country. The warehouse in the host country is used to store their goods and inventories. There is also an office in the warehouse which is normally managed by the HQ staffs. Besides that, whether the office will be staffed with U.S or domestic workers which HR is concern about are depends on the knowledge of foreign market.
International division is the stage three of Internationalization. A company starts a factory to manufacture products in a foreign market and uses domestic workers in plant operations whereby the export of their main part is still on-going. Besides that, HR is concern with the parent-country management, and also concerns with finding parent-country employees who can well direct the operations of the subsidiary in the foreign market (Dowling, P.J., Festing, M. & Engle, A.D., SR., 2014).
The stage four of Internationalization is global product/area division. It is define as a company has already become a multinational