The Decision of Either Going International or Staying Domestic

In recent years, the number of studies on international tradeInternational trade and firm performance has been increasing exponentially. Aiming at unifying the conclusions of these studies, this chapter, which is mainly based on Forrest et al. (Theor Econ Lett 9:649–674, 2019), presents a general theory regarding how trades internationally can either negatively or positively affect the performance of the firm of concern. It accomplishes this goal by employing the logic of systemic thinking and game theory. By revisiting two theorems on the dynamics of competition of the domestic market, as established in the previous chapters, the present chapter focuses on discussions and results on exports to either lesser developed or more advanced foreign marketsForeign markets. Although the formulated general theory is about international trades, it emphasizes on both exports and imports, while considering firm performance in terms of productivityProductivity, profitabilityProfitability, employee wagesEmployee wages, and survivalSurvival. Other than re-confirming some of the previously established empirical findings, this chapter also outlines suggestions for future research. Due to the introduction of the logic of systemic thinking into the study of international trades, this chapter provides a much-needed framework for public debates and policy decision-making.