63 Foreign Markets.pptx - Foreign Markets Foreign Markets:...

Foreign Markets

Foreign Markets: Introduction
•
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.
•
Exporting goods is often the first step to entering a foreign
market.

Foreign Market Entry
Firms can enter foreign markets through
•
Exporting
•
Turnkey projects
•
Licensing
•
Franchising
•
Joint ventures
•
Wholly Owned Subsidiary

Foreign Market Entry…
•
The advantages and disadvantages of each entry mode
is determined by
•
Transport costs and trade barriers
•
Political and economic risks
•
Firm strategy
•
A firm expanding internationally must decide
•
Which markets to enter
•
When to enter them
•
on what scale
•
How to enter them

Evaluating Cost, Benefit and Risks in
Foreign Markets

Exporting
•
Exporting is often the first method firms use to enter foreign markets
•
It is a function of international trade where goods produced in one