This paper reviews empirical tests of two of the main implications of the internationalization model: that firms, as they gain international experience, enter markets of increasing psychic distance and that they enter a given market with successive entry modes that reflect increasing commitment....

We empirically test the proposition that foreign direct investors should use joint ventures with local firms for their first investment in unfamiliar markets. By tracking the expansion paths of Japanese investors in the US, we find no evidence that the growth of Japanese firms which first...