Different States, Different Internationalizations: A Comparative Analysis

Abstract: Recently internationalized firms from emerging markets have started gaining importance in the world. This research attempts to contribute to the study of internationalized firms from emerging markets by analyzing the different ways in which internationalization has evolved in Argentina, Brazil and Chile. The main argument of this research is that state indirect and direct actions have shaped the type of internationalization in these three countries. A state that can enhance strong pro-market institutions but at the same time it does not hesitate to use a more direct type of intervention will most likely have higher levels of firms ’ internationalization. In this sense, the way privatizations are implemented, the specific incentives for the creation of capital availability for private firms as well as consistent public policies and institutional stability are the central mechanisms by which the state influences the internationalization of domestic firms. Direct intervention has proven successful in several Brazilian sectors as well as in a select group of Chilean ones. Strong pro-market institutions may help in the process of internationalization in highly competitive and unregulated sectors but additional support seems to be necessary to increase the number and type of industries in which firms internationalize. In comparison t