This ppt will be helpful for BBA AND MBA students for their exam and interviews. Also helpful for those who are teaching this international business for MBA students . This is explaining the meaning and scope of international business and approaches to international business in the current period . This is also explaining the performance of Global business and controlling of international business . Different forms of international business and performance evaluation system Global business

1. UNIT-III
GLOBAL ENTRY
BY
BINDU.M.K

2. .
Meaning of International
Business
Insimplewords,Internationalbusinessrefers
tothetradeofgoods,services,technology,
capital,and/orknowledgeacrossnational
bordersandonaglobalscale

3. MODES OF ENTRY INTO INTERNATIONAL
BUSINESS
1.EXPORTING
2.LICENSING
3.FRANCHISING
4.MERGER & ACQUISITION
5.FDI
6.JOINT VENTURE
7.CONTRACT MANUFACTURING
8. STRATEGIC ALLIANCE

4. Global Entry Strategy
A Global Entry Strategy is the planned
method of delivering goods or services
to a
new target market and distributing them
there.

5. Major Issues In Going Global
(1) the target product/market
(2) the goals of the target markets
(3) the mode of entry
(4) The time of entry
(5) A marketing-mix plan

6. Political Issues
• Political issues will be faced mostly by
the companies who want to enter a
country that with unsustainable political
environment.
• A political decisions will affect the
business environment in a country and
affect the profitability of the business
in the country

7. FRANCHISING

8. Franchising is a form of marketing
and distribution in which the owner
of a business system (the franchisor)
grants to an individual or group of
individuals (the franchisee) the right
to run a business selling a product or
providing a service using the
franchisor's business system.

9. Advantages of Franchising
1.Low political risk
2.Low cost
3. Allows simultaneous expansion
in to different regions of the world
4.Well selected partners bring
financial investment as well as
managerial capabilities to the
operation

10. Disadvantages of Franchising
1. Maintaining control over franchisee may be
difficult
2. Conflicts with franchisee are likely, including
legal disputes
3. Preserving franchisor's image in the foreign
market may be challenging
4. Requires monitoring and evaluating
performance of franchisees, and providing
ongoing assistance.

11. Mergers & Acquisition
Mergers and acquisitions (M&A) are
defined as consolidation of companies.
Differentiating the two terms, Mergers is
the combination of two companies to
form one, while Acquisitions is one
company taken over by the other.

12. Advantages
1.Obtain control over the acquired firm
such as factories and brand names
2. Integrate the management of the firm
into its overall international strategy
3. Another advantage is Synergy, that is
increased value efficiencies of the new
entity

13. Disadvantages
1.As a result of M&A, employees of the small
merging firm may require exhaustive re-skilling.
2.Merging two firms that are doing similar
activities may mean duplication and over capability
within the company that may need retrenchments.
3. Increase in costs might result if the right
management of modification and also the
implementation of the merger and acquisition
dealing are delayed.

14. Ajointventure
A Joint Venture (JV) is a business arrangement
between two or more parties. These parties are
coming together and pooling their resources to
complete a specific task.
The parties have joint ownership and therefore
share costs, losses, and profits.

15. Advantages
1.Entering related businesses that
previously presented high barriers to
entry.
2.Gaining access to expertise without
the need to hire more staff.
3.Leveraging existing technologies
and patents developed by other
companies.

17. Licencing
A business arrangement in which
one company gives another company
permission to manufacture its
product for a specified payment

18. Advantages
1.Obtain extra income for technical
know-how and services.
2. Reach new markets not accessible
by export from existing facilities .
3. Quickly expand without much
risk and large capital investment.

19. Disadvantages
1. Lower income than in other entry
modes
2. Loss of control of the licensee
manufacture and marketing
operations and practices leading to
loss of quality
3. Risk of having the trademark and
reputation ruined by an incompetent
partner

20. Foreign Direct Investment
Foreign direct investment (FDI) is an ownership
stake in a foreign company or project made by an
investor, company, or government from another
country.
Generally, the term is used to describe a business
decision to acquire a substantial stake in a foreign
business.

21. Disadvantages
As it focuses its resources elsewhere
other
than the investor’s home country, it can
sometimes hinder domestic invest
Because political issues in other
countries
can instantly change, it is very risky.
It can affect exchange rates to the
advantage of one country and the

22. Advantages
1.Foreign direct investment can stimulate the
target country’s economic development,
creating a more conducive environment
2.Foreign direct investment creates new
jobs, as investors build new companies
in the target country, create new
opportunities.
3.One big advantage brought about by
FDI is the development of human
capital resources