Entering International Markets

Question 1

international markets

Answer 1

-selling goods in oversea markets
-growth potential is greater
-profit and economies of scale

Question 2

Exporting

Answer 2

-continue to produce goods in domestic nation
-use left over resources
-existing production
-export to foreign markets that you want to penetrate
-low cost way of selling in other nations
-no investment but no physical location for consumer

Question 3

Licensing

Answer 3

-selling the permission to produce your goods to another organisation
-already active in overseas market
-they pay you for the permission

Question 4

Joint Venture

Answer 4

-more permeant role
-find local firm that is active in that nation and agree to joint venture
-they dont merge together
-mutual beneficial partnership
-domestic firm helps them
-in return they will share profit back

Question 5

Strategic Alliance

Answer 5

-group that wants to try and penetrate nations together
-maybe from different markets but all selected a country
-band together to share resources in order to sell/ warehouse space

Question 6

Cross Border Mergers

Answer 6

-business penetrates overseas economy by actually merging/takeover a company from that nation
-benefit of taking over existing brand name/active
-minimise risk
-pay the price of buying the shares, cultural differences, language issues

Question 7

Direct investment

Answer 7

-establishing own production there/ retail outlets/green field
-expensive way
-have control over process, image and reputation, quality, distribution