China has the largest population, 1.32 billion, in the world (BBC).

Even if you have not

been to China or do not know anyone fro there, this !ountry has an effe!t on your life.
"f you stop for a oent and look around at the produ!ts surrounding you, we !an assure
you that at least one of the has a little sti!ker that says #$ade in China%. "t is diffi!ult to
iagine what kind of su!!ess story siple sti!kers !an have. &ne of su!h su!!ess stories
is, '($ )aflata!. *he story of this !opany started with sall e+perients in the 1,-.s
in /inland, and now '($ )aflata! is a leading global supplier of pressure sensitive label
sto!k. *his !opany has a worldwide business network and has ade sales of
appro+iately one billion Euros (2..-). *his rearkable growth !ould not have been
a!hieved without internationali0ation, and that is why '($ )aflata! has widened their
business area to five !ontinents.
1ow firs internationali0e is a widely e+ained area without any spe!ifi! and general
answer. *here is not one parti!ular theory of international trade that !ould suffi!iently
e+plain all fors of international transa!tions of goods and servi!es. *he for!es behind
the patterns of internationali0ation !hange over tie. "nternationali0ation should not be
looked upon as one single pro!ess but as a !hain of separate and linked pro!esses. "n ea!h
!opany the internationali0ation pro!ess ay have uni2ue eleents where the fir3s
history and spe!ifi! !hanges in the !opetitive and !orporate environent need to be
e+ained. *his is e+hibited by giving a full des!ription of '($ )aflata!3s
internationali0ation pro!ess in the geographi!al area of China.
/innish !opany that is now international in its operations. China, on the other hand, in
its nature as a growing e!onoy, is a relevant !ornerstone in the internationali0ation
pro!ess of any !opany. Being one of the largest re!ipients of foreign dire!t investent
China is a fundaental arket area for internationali0ing !opanies. China was a !losed
e!onoy until 1,-4, and an entry into su!h a vast and !hallenging area !an be
!opli!ated. *his is not only be!ause of the !ople+ situation after the e!onoi!
transforation, but also be!ause of the overall !ultural differen!es. "nternationali0ing into
a !ountry near the hoe !ountry, with !ultural siilarities, would be easier. 5ny !opany
has to have a !lear !opetitive and ad6ustable strategy in order to survive the obsta!les of
internationali0ation.
Questions:
71. 8hat was '($ )aflata!3s internationali0ation strategy for China9
72. 8hat were the underlying fa!tors for their internationali0ation pro!ess in China9
73. 8hat was their entry ode for the Chinese arket9