Archive for December, 2011

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 12

Entering international markets part 12 CONTRACT MANUFACTURING: a firm contracts with a local manufacturer to produce its products to the firm’s specifications. An example of this is when Gates Rubber licensed one of its belt technologies to General Tire’s Chilean plant. Or the case of Peace Frogs T-shirts who exports T-shirts directly to some countries, […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 11

the article on entering international markets continues, part 11. this market entry method talks about wholly owned subsidiaries WHOLLY OWNED SUBSIDIARY (WOS): entails a direct investment in the target country. Wholly owned operations are subsidiaries in another nation in which the parent company has full ownership and sole responsibility for the management of the operation. […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 10

The article on entering international markets continues, part 10 E-COMMERCE: using inter-networked computers to create and transform business relationships. Applications provide business solutions that improve the quality of goods and services, increase the speed of service delivery, and reduce the cost of business operations. A new methodology of doing business in three focal areas: *Business-to-business […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 9

the article on entering international markets continues, part 9 B. Indirect: selling goods and services through various types of intermediaries. 1. Foreign agents are hired by companies for representation in overseas markets as the agent has knowledge of business practices, language, laws, and culture. There are different types of agents who perform a number of […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 8

The article on entering international markets continues, part 8 6. Direct EXPORTING A. DIRECT: selling a product or service directly to a foreign firm by the home-country firm. Costs and prices may be lowest if production occurs in only a few locations around the world and the efficiently produced goods are exported to most markets. […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 7

Entering international markets part 7 more on international business D. Example of Two or More International Companies for a Limited Duration Project: a very popular mode. This mode can be demonstrated best by considering a construction project in Turkey. Bechtel Group established a joint venture with Enka Insaat va Sanayi to construct the 229-kilometer Ankara-Gerede […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 6

Continuing the article on entering international markets B. Example of Two International Companies Joining for Business in a Third Market: Ford and Volkswagen teamed up in 1987 to form Autolatina in an effort to sell cars in South America. Autolatina produced vehicles that were based on Ford and Volkswagen designs but marketed through each respective […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 5

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 5 of the article on entering international markets 5. JOINT VENTURES: a cooperative between two or more organizations that share a common interest in a business enterprise or undertaking; is a popular mode for quick entry. A. Example of International Company and Local Owners: General Mills […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 4

entering international markets part 4 4. FOREIGN DIRECT INVESTMENT: The direct ownership of facilities in the target country. It may be made through the acquisition of an existing entity or the establishment of a new enterprise. There is a high degree of commitment and high level of resources. Japanese manufacturers are well known for their […]

WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS, part 3

this continues the article on entering overseas markets, part 3 3. LICENSING: a contractual arrangement whereby a company transfers via a license, the right to distribute or manufacture a product or service to a foreign country or to use any type of expertise which may include some or all of the following: patents, trademarks, company […]