Discuss about the Contractual Entry Mode in the foreign market.

Answer: Profitability analysis requires estimation of both international revenue and incremental costs. Licensing is used when exporting or equity investment cannot use. As a result, licensing is considered its marginal activities of manufacturers. This causal approach encourages 2 bad decisions; Under licensing—manufacturer ignores licensing when it is more profitable (should do). Over licensing—Manufacturers enter into Read More

What are the factors influencing the choice of entry mode in the foreign market?

 Answer: The entry mode decision is a complex process with numerous trade-offs among alternative entry modes. To handle this complexity, managers need an analytical model that facilitates systematic comparisons among entry modes. For the present, we offer a general view of the external and internal factors that influence the choice of entry mode. External Factors: Read More

Classification of the foreign market entry modes.

Answer: A foreign market entry mode is an institutional arrangement that makes possible the entry of a company’s products, technology, human skills, management or other resources into a foreign country. A domestic company that contains its market, the question of entry mode as distinguish from market entry (the marketing plan) simple does not arise.   Read More

How to design foreign market entry strategies?

Discuss the elements of foreign market entry strategies. Designing Foreign Market Entry Strategies Company may enter into foreign markets for several reasons; Some go because home markets are stagnant and foreign markets are faster. Other may follow their domestic customers who are going international. Services companies—computer, engineering, insurance etc. Still other firms in oligopolistic industries Read More

Terminology of International Business.

What do you understand by International Business? Explain the terminology of International Business. Answer: International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports. International Business is also known, called or referred as a Read More