Comm320-Section9_10 - INTERNATIONAL MARKETENTRY&FAMILY...

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INTERNATIONAL ARKET TRY & MILY MARKET ENTRY & FAMILY BUSINESS / TRANSITION ourse Pack ction & 10 Course Pack – Section 9 & 10 COMM 320
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ternational Market Entry International Market Entry The international market place represents another window of opportunity for small businesses ; Technological advances are making it easier through improved systems of transactions, shipments, financial payments, etc. owever, there are still risks associated with it; However, there are still risks associated with it; Small firms will have to give up some profits, and likely some control, in order to fully reap the benefits of a global economy; Also, small businesses have limited resources, and if a firm is not experienced in this area, it will be a new challenge, full of complexities, etc. 2
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Market Research / Assessment e opportunities need to be researched and assessed (note that it is The opportunities need to be researched and assessed (note that it is similar to general business planning): Market size; Potential for growth; Intensity of competition; Political stability in foreign market; onomic forces such as inflation interest rates economic policies; Economic forces such as inflation, interest rates, economic policies; Currency exchange; Tariffs and quotas; Complexity of tax system; Protectionism / barriers; Benefits, grants, tax exemptions, etc. Life style issues; ational plans / policies of the foreign country National plans / policies of the foreign country. 3
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porting Framework Exporting Framework Strategies for entering into the international market place can be described based on the following framework: Description; Integration; arriers Overcome; Barriers Overcome; Types of Business; Advantages; Disadvantages; Legal Implications. 4
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ntry and Distribution Modes Entry and Distribution Modes The modes (or methods) are as follows: Trading House; Foreign Distributors; Foreign Agents; oing it alone: Going it alone: Representative Office; Wholly owned “Greenfield” investment; Joint venture; Licensing (franchising). 5
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ading House Trading House The firm sells it goods to, for example, a Canadian Trading House, the ansaction takes place in Canada and the Trading House assumes all transaction takes place in Canada, and the Trading House assumes all responsibilities; The goods are exported “as is” with no transformation taking place; g p g p; Sensible approach for bulk goods, generic products where branding is less important ; An advantage of this method is that a small firm can get its goods into the international marketplace and avoid all risks associated with marketing, sales, distribution , etc. g, , , A disadvantage is that the small firm has virtually no control on anything that happens in the international marketplace.
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This note was uploaded on 11/09/2011 for the course BUSS 320 taught by Professor Inna during the Spring '11 term at University of Arkansas – Fort Smith.

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Comm320-Section9_10 - INTERNATIONAL MARKETENTRY&FAMILY...

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