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International Business Entry

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Presentation on theme: "International Business Entry"— Presentation transcript:

1 International Business Entry
CHAPTER 12 Hao Zhuo TFSU

2 Learning Objectives Incentives of international business
Determinants of entry mode choices Direct exporting and indirect exporting Licensing and franchising

3 Incentives of International Business
Source: searched by Google picture.

4 Determinants of Entry Mode Choices
Environmental Factors The host country market the conditions of foreign infrastructures, factors of production and the supporting and related industries. The indirect environmental factors of a host nation Internal Factors of an Enterprise The product or service produced The resource factors

5 Characteristics of Different Entry Modes
Indirect Export Direct Export Licensing Franchising Contract Manufacturing Foreign Assembly Foreign Production Foreign Involvement < Overseas Capital Investment Degree of Control Risks Market Price Flexibility > Source: Editorial committee on Elaboration of Harvard: The New Economy (2001), International Business, China Business United Press.

6 Going Abroad through Exporting
Export through Trading Companies

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10 Going Abroad through Licensing and Franchising

11 Thank you!


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