1. International Business Organizations
Section 3-3

2. Multinational Companies (MNC)
Do business in several countries
Home country
Divisions or separate companies
Host countries

3. MNC Strategies Same product Same marketing strategy Example: Coca-Cola
Global Strategy
Multinational Strategy
Same product
Same marketing strategy
Example: Coca-Cola
Each country is considered different
Adapts to the consumer
Customs
Tastes
Buying Habits

4. Global Entry Methods
Licensing
Franchising
Joint Venture

5. Licensing
Selling the right to use an intangible property for a fee or royalty
Such as
Production process
Trademark
Brand Name
Example: Gerber Baby Food in Japan
Low Risk → Low Return

6. Franchising A company is set up to look and run like a parent company
What are some examples of franchises?
What are the benefits to a franchise?
Limited Risk → Limited Return

7. Joint Venture
Agreement between two or more companies to share a business project
Why would this be used?
Share
Raw Materials
Shipping Facilities
Management Activities
Production Facilities
Ford and Mazda

8. This Joint Venture Looks INTELliGEnt
What two companies are starting a joint venture?
What is the goal of the joint venture?
What are the two companies combining?
Is the joint venture a good idea? Why or why not?

9. World Trade Organizations (WTO)
Promotes Trade
Settles trade disputes
Enforces free-trade agreements
Lowers tariffs
Eliminates quotas
Reduces barriers
Assists poor countries

10. International Monetary Fund (IMF)
150 member nations
Stabilizes world trade and exchange rates

11. World Bank
Provides economic aid to less developed countries

12. Pop Quiz What are the three global entry methods?
What is a joint venture?
How much risk does a franchise have?
How many nations are part of the IMF?
List 3 things that the WTO does?

13. Dlabay, Burrow and Eggland. Intro to Business 6e
Dlabay, Burrow and Eggland. Intro to Business 6e. Mason, OH: Thompson South-Western, 2006.