Lecture International trade and investment: Chapter 12 - John Gionea

The Firm’s Market­Entry Strategies EXPORTING ? FRANCHISING? TURNKEY? DIRECT INVESTMENT ? Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a NTRACTING ? International Trade and Investment by John Gionea LICENSING ? Slides prepared by John Gionea TOPIC PLAN » The firm’s foreign business strategy » Exporting » Contracting (licensing, leasing etc) » Joint ventures » Wholly-owned company » Advantages and disadvantages of various market entries » Strategic FDI plan issues Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea Export­import Management Company business strategies » Domestic strategies – Investment in product development – Expand domestic market share – Diversify into new industry. » Foreign business strategies – Exporting – International contracting – Foreign Direct Investment/Foreign production Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea The Firm’s Foreign Business Strategy Steps(Figure 12.1) 1.The firm’s evaluation » Competitive advantages and disadvantages 2.Selection of a target (geographic) market. 3.Selection of product to make/sell in target market 4.Selection of market-entry mode: » Exporting/Contracting/Foreign Direct Investment 5.Business plan development and execution. 6.Monitoring and evaluation of results. Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea Exporting World Exports of Goods (US $6,1862 billion in 2000) have declined in relative importance compared to foreign production (US$ 15,680 billion in 2000) Most likely mode for serving a foreign market for a domestic firm starting in international business. » The Business Plan (Export marketing plan) » Many global companies combine exports and FDI. Copyright ©2003 McGraw­Hill Australia Pty Ltd PPTs t/a International Trade and Investment by John Gionea Slides prepared by John Gionea ... - tailieumienphi.vn