Foreign markets entry modes

Résumé du document

Highlight the conditions under which the best decision for a firm is to use exports to service a foreign market. Under which conditions may it be best to use direct foreign investment? Why do firms and businesses Choose either Export or FDI?

Extraits

[...] 280-331. Osland, G. E., Taylor C.R. and Zou, S. (2001). Selecting International modes of entry and expansion. Marketing Intelligence & Planning, vol nº pp. 153-161. [...]

[...] Hollensen, S. (2003), Global Marketing, a market-responsive approach, 3rd edition. FT Prentice Hall. Johnson, G., Scholes, K. and Whittington, R. (2005). Exploring Corporate Strategy, 7th edition. Harlow : FT Prentice Hall, pp. [...]

[...] Coca-Cola & Toyota in France Disadvantages : - High cost and Unpredictable ROI - Time consuming - Very low flexibility (as an entry mode) coca-colatoyota Internal Factors 2-Second concept : Control Advantages : - 100% control - Facilitates integration and coordination of activities across national boundaries - Brand image self-managed Disadvantages : - Choice of distribution channels - Choice of people 3-Third concept : Risk Slow to establish Internal Factors External Factors PESTEL : Economical: Thailand economic crisis in 1997 Political & Legal: - Civil war - Corruption : China - Terrorism : Total in Nigeria - Environmental: Natural disasters Technological : - Telecommunications - Electricity - Transportation Conclusion References Cadogan, J.W., Diamantopoulos, A. and Siguaw, J.A. (2002). Export Market-Oriented Activites : Their Antecedents and Performance Consequences. Journal of International Business Studies, vol.33, no.3, pp 615-626. Hill, C.W.L. (2007) International Business : Competing in the Global Marketplace, 6th edition, New York: McGraw-Hill/ Irwin, pp.480-507. [...]

[...] Foreign Direct Investment (FDI) is an investment made by a foreign individual or company in productive capacity of another country. High control, High Risk and Low flexibility Types of FDI Joint Ventures It is about direct investment in business sites in the target country - Fuji & Xerox FXPremier Internal Factors 1-First concept : Resource needs Advantages : - Benefiting from a local partner: In terms of investment - It allows sharing of costs Disadvantages : - People factor eg : Top Management Internal Factors 2-Second concept : Control Advantages : - Control shared formally depending on the level of ownership. [...]

[...] Foreign markets entry modes Why do firms and businesses Choose either Export or FDI? MCj04241980000[1]MCj04125660000[1] Summary Export What is Export? Types of Export Internal and External Factors of influence FDI Definition Types of FDI Internal and External Factors of influence Conclusion Export MCj02871290000[1] Goods \\homedrive\okarimpo\Microsoft Clip Organizer\j0435350.wmf\\homedrive\okarimpo\Microsoft Clip Organizer\j0433600.wmf What is Export? In economics, an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade, and is an important part of international trade Externalisating Low Control, Low risk and High flexibility. [...]