1. Export Based Methods for Internationalization. It is the most common way in which a firm becomes international, by producing its products in the domestic markets but exports a proportion of its products to foreign markets.
Exporting is an oldest and straight forward way of carrying international business.
What is foreign market
Foreign markets are any markets outside of a company’s own country. Selling in foreign markets involves dealing with different languages, cultures, laws, rules, regulations and requirements.
Companies looking to enter a new market need to carefully research the potential opportunity and create a market entry strategy.
What are the international trade theories
There are 6 economic theories under International Trade Law which are classified in four: (I) Mercantilist theory of trade (II) Classical Theory of trade (III) Modern Theory of trade (IV) New Theories of trade.
Both of these categories, classical and modern, consist of several international theories.
What are the 4 multinational strategies
Multinational corporations choose from among four basic international strategies: (1) international (2) multi-domestic, (3) global, and (4) transnational.
These strategies vary depending on two pressures; 1) on emphasizing low cost and efficiency and 2) responding to the local culture and needs.
What are the 6 theories of international trade?
- TOPIC NAME: THEORIES OF INTERNATIONAL
- Mercantilism:
- Absolute Advantage:
- Comparative Advantage:
- Heckscher-Ohlin Theory (Factor Proportions Theory):
- Country Similarity Theory:
- Product Life Cycle Theory:
- Global Strategic Rivalry Theory:
What are three methods companies use for entering foreign markets check all that apply?
- exporting
- licensing or franchising to a company in the host nation
- establishing a joint venture with a local company
- establishing a new wholly owned subsidiary
- acquiring an established enterprise
What is contractual mode
Contractual entry modes are long term non-equity alliance between the company that wants to internalize and the company in target country for entry mode.
There are many types of contractual entry mode namely technical agreements, Service contracts, managements, contract manufacture, Co-production agreements and others.
Which entry mode is used frequently by pharmaceutical firms
After analysing market drivers, demand and consumer behaviour, Pharmaceutical firms may choose the most strategic mode of entry to enter a market.
The market entry mode is strategic and is regarded as a major factor in the Internationalisation process (Morschett et al.,2015, p.
323).
What is the meaning of mode of entry
Modes of entry into an international market are the channels which your organization employs to gain entry to a new international market.
This lesson considers a number of key alternatives, but recognizes that alternatives are many and diverse.
What is licensing mode of entry
07/10/2016. Licensing is a transfer-related market entry strategy. It involves a company (known as the licensor) granting permission to a company in another country to use its intellectual property for a defined time period.
What is franchising as an entry mode
Franchising is a model for businesses to achieve scale with limited resources. International franchising is a mode of entry that allows firms to develop new markets with relatively little risk but also little control.
What is partnership entry mode
In international markets, partnership entry modes include joint ventures, licensing, and joint distribution networks.
Self-reliance entry modes imply internalization which is usually manifested in the form of wholly owned manufacturing or distribution subsidiaries.
What is joint venture entry mode
Joint Venture Creating a third company with another partner is often the preferred market entry method, especially in emerging markets.
A joint venture means that the company can take advantage of the partner’s infrastructure, local knowledge and reputation.
What are the 4 types of marketing strategies
The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service.
Typically, businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience.
What are the benefits of global strategy?
- Generating new sales
- Fostering global brand awareness
- Diversifying risks
What are the types of licensing?
- Patent Licensing
- Trademark Licensing
- Copyright Licensing
- Trade Secret Licensing
- Exclusive
- Non-exclusive
- Sole
- Perpetual
What are the four types of markets in economics
Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly.
The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
What are import strategies
An effective import strategy must take into account all the factors you would consider in any form of purchasing.
At the same time, you need to plan how you will deal with extra challenges, such as dealing with long delivery times and the financing burden this can impose.
Your import objectives. Importing action plan.
What is investment scale
A scale in strategy gives an investor the option of buying additional stock as the price drops.
An investor using this strategy assumes that the decline in price is temporary and the stock will ultimately rebound, making the lower price a relative bargain.
What are the three market entry strategies?
- Direct Exporting
- Licensing
- Franchising
- Partnering
- Joint Ventures
- Buying a Company
- Piggybacking
- Turnkey Projects
What is an export strategy
An exporting strategy starts with the products or services that you offer. Some companies and organizations believe that their domestic products or services can be exported without significant changes or modifications, but the truth of matter is quite.
What are two equity based modes of entry
The equity modes of entry into a foreign market include both direct investment in facilities in the overseas location, as well as joint ventures with companies in the same industry with a base in the target market.
What are the four market entry strategies?
- Structured exporting
- Licensing and franchising
- Direct investment
- Buying a business
What is equity mode
The equity modes category includes joint ventures and wholly owned subsidiaries. Different entry modes differ in three crucial aspects: The degree of risk they present.
The control and commitment of resources they require. The return on investment they promise.
How is entry mode determined
Firm’s strategic goals for international expansion are also one of the foremost determinants underlying entry mode selection.
Other firm specific factors which determine the entry mode choice are: international or business experience, size of the subsidiary, diversity of operations, nature of the product etc.
What is the export marketing
Export marketing is used when a company wants to export or is exporting products/services to a foreign country.
Hereby a company markets the products/services in international locations. Many companies would like to export their products/services to other markets.
Why entry mode is important
The choice of entry mode is an important strategic decision for SMEs as it involves committing resources in different target markets with different levels of risk, control, and profit return.
What means market entry
Market entry includes all the activities involved in bringing a product or service to a new market—whether that market is a new country, demographic or customer segment.
What is the difference between licensing and franchising
In a franchise partnership, the business belongs to the franchisee. The franchisee essentially runs the business for the franchisor, but at a fee.
In a licensing partnership, the licensee only pays the licensor for a specific product, for which the licensor may have taken out patent rights.
What is the goal of revenue analysis
Remember, the goal of revenue analysis is not just to measure progress, but to uncover insight that can drive decision-making for the business.
It’s one thing to show a graphical representation of revenue increases in February compared to January, which is always a great sight.
Sources
https://www.investopedia.com/terms/s/scale-in.asp
https://studycorgi.com/four-stages-of-marketing-internationalization/
https://testbook.com/objective-questions/mcq-on-modes-of-entry-into-international-business–5fc4282c37912d64182977a9
https://quizlet.com/de/272991810/entering-foreign-markets-flash-cards/
