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Because of the association between new venture performance and the internationalization of new ventures, many scholars, business experts, and government agencies advise all firms, including new and small ventures, to try internationalization. As a matter of fact, higher levels of internationalization—measured by foreign sales as a percentage of total venture sales—have been associated with higher relative market share a few years later and subsequently a good return on investment for U.S. firms.

According to research conducted at the University of Pennsylvania, it is quite possible that international operations might cost more than expected in the short run; however, corporate ventures' market share increases in the medium run. This might be interpreted as a higher return on investment as scale benefits translate into higher profitability. Obviously, a ...

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