After the World War II, there has been rapid growth in international trade in both goods and services, resulting in various transactions across national borders for the purpose of satisfying the needs of individuals and organisations. The result of this global competition has forced organisations to expand their business by finding out new markets at home and foreign countries making them 'Transnational firms'. Transnational Corporations (TNC) is defined as a firm that has power to co-ordinate and control operations in more than one country, even if it does not own them. The significance of TNC lies mainly in its ability to coordinate and control different transactions within transnational production networks, ability to take advantage of distribution factors of production and ability to be flexible in locations. The growing TNCs led to various patterns and trends in international business like rapid growth in world trade and investment, cross border mergers and acquisitions resulting in the process of Internationalization. Internationalization is the process of increasing involvement in international operations across national borders which comprises both changed perspectives and positions. Internationalization is one potential strategy that is being used increasingly by business firms to maximize size of the firm, increase their profitability, increasing their market share and becoming industry leader. It is a major attribute of the current strategy process of most business firms which determines the ongoing development and change in the international firm in terms of values, scope, principles, business ideas, action orientation, nature of work and converging norms. The internationalization dimension is related to all these aspects of the strategy process and thus making the firms become 'Transnational'. In this global competition, it is important for the firm to become transnational and internationalization process focuses mainly on the development of the individual firm on its gradual acquisition, integration, and use of knowledge about foreign markets and operationsAfter the World War II, there has been rapid growth in international trade in both goods and services, resulting in various transactions across national borders for the purpose of satisfying the needs of individuals and organisations. The result of this global competition has forced organisations to expand their business by finding out new markets at home and foreign countries making them 'Transnational firms'. Transnational Corporations (TNC) is defined as a firm that has power to co-ordinate and control operations in more than one country, even if it does not own them. The significance of TNC lies mainly in its ability to coordinate and control different transactions within transnational production networks, ability to take advantage of distribution factors of production and ability to be flexible in locations. The growing TNCs led to various patterns and trends in international business like rapid growth in world trade and investment, cross border mergers and acquisitions resulting in the process of Internationalization. Internationalization is the process of increasing involvement in international operations across national borders which comprises both changed perspectives and positions. Internationalization is one potential strategy that is being used increasingly by business firms to maximize size of the firm, increase their profitability, increasing their market share and becoming industry leader. It is a major attribute of the current strategy process of most business firms which determines the ongoing development and change in the international firm in terms of values, scope, principles, business ideas, action orientation, nature of work and converging norms. The internationalization dimension is related to all these aspects of the strategy process and thus making the firms become 'Transnational'. In this global competition, it is important for the firm to become transnational and internationalization process focuses mainly on the development of the individual firm on its gradual acquisition, integration, and use of knowledge about foreign markets and operations

A. Briefly describe Theories of Firm Internationalization.

B. Describe the process of internationalization.