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3 im modes of entry
There are several methods for companies to participate in international markets outside of their home country. A joint venture is when two or more parties create a new business entity together with shared ownership, returns, risks, and governance. Choosing the appropriate mode of entry depends on factors like costs, risks, and desired level of control in the foreign market.
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CHAPTER 10 Export Modes
With export entry modes a firm’s products are manufactured in the domestic market or a third country and then transferred either directly or indirectly to the host market. Export is the most common mode for initial entry into international markets. Sometimes an unsolicited order is received from a buyer in a foreign country, or a domestic customer expands internationally and places an order for its international operations. This prompts the firm to consider international markets and to investigate their growth potential.
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Exporting can be organized in a variety of ways, depending on the number and type of intermediaries. As in the case of wholesaling, export and import agents vary considerably in the range of functions performed. Some, such as export management companies, are the equivalent of full-service wholesalers and perform all functions relating to export. Others are highly specialized and handle only freight forwarding, billing or clearing goods through customs.
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There are several methods for companies to participate in international markets outside of their home country. A joint venture is when two or more parties create a new business entity together with shared ownership, returns, risks, and governance. Choosing the appropriate mode of entry depends on factors like costs, risks, and desired level of control in the foreign market.
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The document discusses various strategies for entering international markets, including exporting, importing, licensing, franchising, and foreign direct investment. It explains that successful international managers display commitment, activity, aggressiveness, and orientation. Firms consider proactive and reactive motivations for going abroad as well as the level of commitment, concerns, and use of intermediaries needed for internationalization. Strategies like licensing require less investment but also limited involvement, while full ownership allows more control but greater risk.
CHAPTER 10 Export Modes
With export entry modes a firm’s products are manufactured in the domestic market or a third country and then transferred either directly or indirectly to the host market. Export is the most common mode for initial entry into international markets. Sometimes an unsolicited order is received from a buyer in a foreign country, or a domestic customer expands internationally and places an order for its international operations. This prompts the firm to consider international markets and to investigate their growth potential.
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This document discusses identifying and analyzing domestic and international opportunities for new ventures. It covers opportunity recognition, assessing the size and growth of markets, and factors affecting entrepreneurial performance abroad like culture, economics, and politics. The document also summarizes various strategies for entering foreign markets, including exporting, non-equity agreements, and direct investment through options like licensing, turnkey projects, management contracts, joint ventures, mergers and acquisitions. Barriers to international trade and implications for global entrepreneurs are also mentioned.
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- Mega-rounds (deals over $50 million) drove much of the funding growth, with over 60 mega-rounds in 2015 compared to under 15 from 2011-2013.
- While deal activity declined in the second half of 2015, large deals continued to push overall funding higher, led by regions like Asia, North America, and the UK.
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Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, normally beginning with the steamship and the telegraph in the early to mid-1800s. With increased interactions between nation-states and individuals came the growth of international trade, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
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A multinational corporation (MNC) is a company that owns or controls production establishments in more than one country. The document defines MNCs and describes their structure, factors that led to their growth, benefits they provide, and their code of conduct. MNCs have existed since 1602 when the Dutch East India Company was established as the first MNC. They play an important role in globalization and come in various forms like horizontally integrated, vertically integrated, and diversified corporations.
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1. The document discusses various topics related to business environment and international business including concepts of business environment, theories of international trade, foreign direct investment, balance of payments, economic integration, and international economic institutions.
2. It provides information on key concepts like the micro and macro environment factors impacting business, consumer protection act and rights, foreign exchange management act, and corporate social responsibility.
3. International economic institutions discussed include IMF, World Bank, UNCTAD, and WTO along with their objectives and functions regarding monetary cooperation and economic development.international marketing
The document discusses various strategies for international marketing operations and foreign market selection. It outlines four broad orientations - ethnocentric, regiocentric, geocentric, and polycentric - that determine a firm's level of involvement and control over foreign marketing activities. When selecting foreign markets, firms determine objectives, collect market information, analyze data, create shortlists, conduct in-depth research, and select markets that offer the best long-term potential. Positioning involves strategically developing a unique and advantageous position for a brand in the minds of consumers.
1Chapter 4Marketing 4220 International Sourcing, Logisti.docx
1
Chapter 4
Marketing 4220
International Sourcing, Logistics
& Transportation
Methods of Entry Into Foreign Markets
5/21/2015
1
Methods of Entry Into
Foreign Markets
Entering A New Market
Indirect Exporting
Active Exporting
Production Abroad
Other Issues
2
Entering a New Market
Determining the appropriate method to enter a new market depends on several factors:
Size and growth of the market
Potential market share of the exporter
Type of product and marketing strategy of the exporter
Willingness of the exporter to get involved
Characteristics of the importing country
Time horizon considered
Entering a New Market
The company must decide whether market factors favor
Manufacturing abroad
Manufacturing at home
Active Exporting
Indirect Exporting
Entering a New Market
Active Exporting
Exporter actively participates in finding potential markets abroad.
Best option for large firms or firms with international experience.
Indirect Exporting
Exporter does not seek export sales.
Allows manufacturer to concentrate on domestic market and leave exporting to the experts.
Indirect Exporting
Export Trading Companies
Export Management Corporations
Piggy Backing
6
6
Export Trading
Company
An Export Trading Company [ETC] is a firm with offices in multiple countries that purchases goods in one country and resells them in another.
For the “exporter” selling to the ETC, as well as for the “importer” buying from the ETC, the transactions are domestic transactions, even though the goods eventually travel internationally.
Historically, the first ETCs were created in Britain, France, and the Netherlands to facilitate trade with India and Indochina. They were then created in Spain and Portugal for trade in South America. Following World War II, ETCs became popular in Japan as the country began to trade with the outside world. Today, they are almost exclusively Japanese: Mitsui, Mitsubishi, Marubeni, Itochu, etc.
Export Trading Company
ETC
in Country A
ETC
in Country B
Country A
Country B
Firm 1
Firm 2
ETC
Export Management
Corporation
An Export Management Corporation [EMC] is normally located in the exporting country.
The EMC acts as a representative for the exporter abroad, but never takes title to the goods; it acts as a facilitator helping the exporter find buyers and earns a commission on the sale.
A sale through an EMC requires more exporter involvement; it has to ship the goods, invoice the importer, carry the risk of non-payment and has to manage parts of the transaction.
Export Management Corporation
Exporter
Importer
EMC
Exporting Country
Pays a
commission
Sells
Payment
Importing Country
Goods
Piggy Backing
Piggy-backing refers to the possibility of a small firm piggy-backing on another firm’s efforts to enter a foreign market.
For example:
A firm’s custom ...
Export & import
This document provides information about import and export processes. It defines key terms like import, export, importer, exporter and discusses the balance of trade. It outlines the types of imports and exports and explains the steps involved in export like registering, negotiating terms of sale, understanding documentation and customs formalities. It also discusses modes of payment, advantages and disadvantages of import and export, and institutions that support international trade like EXIM Bank, ECGC and provisions in the foreign trade policy regarding excise duty and customs duty.
international_business module I.ppt
The document discusses the international business environment. It begins by explaining that globalization has increased the importance of international management due to businesses now operating across borders. It then discusses different classifications of the business environment including the micro and macro environment, and domestic, foreign, and global environments. Finally, it outlines the key components of the international business environment, including the political, legal, economic, socio-cultural, technological, natural, and demographic environments.
Independent Study - College of Wooster Research (2023-2024)
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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UGC NTA NETCommerce Unit 1 Dr.K.KarthikeyanVivekananda College, Tiruvedakam West, Madurai, Tamilnadu
1. The document discusses various topics related to business environment and international business including concepts of business environment, theories of international trade, foreign direct investment, balance of payments, economic integration, and international economic institutions.
2. It provides information on key concepts like the micro and macro environment factors impacting business, consumer protection act and rights, foreign exchange management act, and corporate social responsibility.
3. International economic institutions discussed include IMF, World Bank, UNCTAD, and WTO along with their objectives and functions regarding monetary cooperation and economic development.international marketing
The document discusses various strategies for international marketing operations and foreign market selection. It outlines four broad orientations - ethnocentric, regiocentric, geocentric, and polycentric - that determine a firm's level of involvement and control over foreign marketing activities. When selecting foreign markets, firms determine objectives, collect market information, analyze data, create shortlists, conduct in-depth research, and select markets that offer the best long-term potential. Positioning involves strategically developing a unique and advantageous position for a brand in the minds of consumers.
1Chapter 4Marketing 4220 International Sourcing, Logisti.docx
1
Chapter 4
Marketing 4220
International Sourcing, Logistics
& Transportation
Methods of Entry Into Foreign Markets
5/21/2015
1
Methods of Entry Into
Foreign Markets
Entering A New Market
Indirect Exporting
Active Exporting
Production Abroad
Other Issues
2
Entering a New Market
Determining the appropriate method to enter a new market depends on several factors:
Size and growth of the market
Potential market share of the exporter
Type of product and marketing strategy of the exporter
Willingness of the exporter to get involved
Characteristics of the importing country
Time horizon considered
Entering a New Market
The company must decide whether market factors favor
Manufacturing abroad
Manufacturing at home
Active Exporting
Indirect Exporting
Entering a New Market
Active Exporting
Exporter actively participates in finding potential markets abroad.
Best option for large firms or firms with international experience.
Indirect Exporting
Exporter does not seek export sales.
Allows manufacturer to concentrate on domestic market and leave exporting to the experts.
Indirect Exporting
Export Trading Companies
Export Management Corporations
Piggy Backing
6
6
Export Trading
Company
An Export Trading Company [ETC] is a firm with offices in multiple countries that purchases goods in one country and resells them in another.
For the “exporter” selling to the ETC, as well as for the “importer” buying from the ETC, the transactions are domestic transactions, even though the goods eventually travel internationally.
Historically, the first ETCs were created in Britain, France, and the Netherlands to facilitate trade with India and Indochina. They were then created in Spain and Portugal for trade in South America. Following World War II, ETCs became popular in Japan as the country began to trade with the outside world. Today, they are almost exclusively Japanese: Mitsui, Mitsubishi, Marubeni, Itochu, etc.
Export Trading Company
ETC
in Country A
ETC
in Country B
Country A
Country B
Firm 1
Firm 2
ETC
Export Management
Corporation
An Export Management Corporation [EMC] is normally located in the exporting country.
The EMC acts as a representative for the exporter abroad, but never takes title to the goods; it acts as a facilitator helping the exporter find buyers and earns a commission on the sale.
A sale through an EMC requires more exporter involvement; it has to ship the goods, invoice the importer, carry the risk of non-payment and has to manage parts of the transaction.
Export Management Corporation
Exporter
Importer
EMC
Exporting Country
Pays a
commission
Sells
Payment
Importing Country
Goods
Piggy Backing
Piggy-backing refers to the possibility of a small firm piggy-backing on another firm’s efforts to enter a foreign market.
For example:
A firm’s custom ...
Export & import
This document provides information about import and export processes. It defines key terms like import, export, importer, exporter and discusses the balance of trade. It outlines the types of imports and exports and explains the steps involved in export like registering, negotiating terms of sale, understanding documentation and customs formalities. It also discusses modes of payment, advantages and disadvantages of import and export, and institutions that support international trade like EXIM Bank, ECGC and provisions in the foreign trade policy regarding excise duty and customs duty.
international_business module I.ppt
The document discusses the international business environment. It begins by explaining that globalization has increased the importance of international management due to businesses now operating across borders. It then discusses different classifications of the business environment including the micro and macro environment, and domestic, foreign, and global environments. Finally, it outlines the key components of the international business environment, including the political, legal, economic, socio-cultural, technological, natural, and demographic environments.
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1Chapter 4Marketing 4220 International Sourcing, Logisti.docx
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Independent Study - College of Wooster Research (2023-2024)
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.The Impact of GST Payments on Loan Approvals
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本公司拥有海外各大学样板无数，能完美还原海外各大学 Bachelor Diploma degree, Master Degree Diploma
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留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
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Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
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How Non-Banking Financial Companies Empower Startups With Venture Debt Financing
How Non-Banking Financial Companies Empower Startups With Venture Debt Financing
Employer of record & MSME
- 1. MSME as an Economy contributor Micro, Small and Medium enterprises contributes nearly 33% of the total GDP and out of total exports in F.Y. 2022-23. MSMErole in promotion ofTrade & Investment MSME’s promote trade by increasing exports all over the globe and by reaching even untouched areas of the world which other countries might not have reached with best in class Quality and promote Investments from foreign investors which promotes the brand “BHARAT”. In F.Y. 2022-23, exports from MSME out of total exports amounts to 46 % of the share.
- 2. Difficulties faced by MSME’s in Export promotion For reaching out customers based abroad, Indian entities have to depute its official which requires compliance of visa requirement, insurance, local labor laws, local entity registration, entity statutory compliances etc. which creates mental as well as financial burden on MSMEs. Options other Countries have a. Governmental arrangement: Other countries like Italy through Italian Chamber of Commerce overcome the above difficulty by having governmental arrangement with its foreign counterparts and sponsor the official through this channel. b. EOR (Employer of record): An Employer of Record is a 3rd party entity that takes on certain employer responsibilities like hiring, onboarding, payroll, benefits administration, compliance, and HR-related tasks for a company's workforce, particularly for contingent or remote workers.
- 3. Employer of record (EOR) Key functions Payroll and Benefits Administration Compliance Management Onboarding and Offboarding Risk Mitigation Global Expansion Following are some of the private agencies who provide EOR services: 1. ADP TotalSource: ADP TotalSource is a PEO that provides comprehensive HR outsourcing services, including EOR solutions, to businesses of all sizes. 2. TriNet: TriNet offers EOR and HR services, catering to small and medium-sized businesses in various industries. 3. Insperity: Insperity provides EOR and HR solutions to help businesses streamline HR processes and ensure compliance with local labor laws. 4. Globalization Partners: Globalization Partners specializes in global EOR services, helping companies expand and manage their workforce internationally. 5. Velocity Global: Velocity Global offers international EOR and employment solutions to facilitate global expansion for businesses.
- 4. Our Proposal from MSMEs • Ministerial agreement with foreign trade organizations to facilitate MSMEs expand globally through legitimate EOR services so that MSMEs do not get trapped by fake/un-regulated private EOR agencies. • Relaxation of statutory conditions imposed by foreign counterparts on Indian entities engaging for expansion of business and investments. • Indian government set rules and regulation accepted globally for bringing back expatriates to home. Aman Garg