‘urp|[eSsOYY PLIES yUdWaseueW] JEUOI}EUIAzU] ul $9139}211Si International Management [+ Many tetors ean ittaence a company’s desishn o ener interational markets: 1 hornet util of wl ats + Diveriaton | Mek tpn Capi rencaen j ‘peter A prc ht ne the end of ts Mein he dome market i ad i ca ers i Intemational Management | + Many factors cam inlunce a company’s dessin emer International markets 1 —Pseesspoducton eat (apne cs) ‘ers mass tht cane the sa fom pds ad ets [Cer conc forega mart can ee n-ne pata. provide cpl an art aes j, —Imatoa markes oll be suring ofr mari, omponents sr asenblis, 39 60 ! ro Strategies ae . Leal : International Management =, lt i eae International Management + EXPORTING ; i + LICENSING te EXPORTING i + JOINT VENTURE i {+ exronrinc Atvanag . ; sporiag tmnt cn form fe i OWNERSHIP fae tornreetnetng erated caret ! prt vob hn eher eral i ie etna wale 61 62 Strategies in International Management EXPORTING Advantages: No additional production facilities or other fixed assets tobe committed tothe foreign market. [No investment is required to establish a logistics {network in various markets ! Strategies in i International Management | ewoRTRNe thmaps |The arepepa Macpac iron pots exerts (Natmaatin) Its cea th ro the mare it de oat tee nema pla Capers sorting maybe eed xia entry rae ( Ts he j_eainit tates poatizomer rangi 637/24/2019 + EXPORTING Challenges Sometimes itis dtl toto compete with other forms located in the foreign market + Tat (axes assexsed on goods) + import quotas imitation ou the amount of gods en the market * Unfavorable currency + Exchange rates may adversely affect the price Strategies in International Management ~ Exporting includes 1 Maret plan, phage design slr msi, + Financial motrin, banking arene, ema documentation 65 66 LICENSING LICENSING Antolin preratin whereby rm tsa oanry ae eee ‘be am excellent approach if the foreign market has Tis tell bani orteisiapre cor ia et eee teele Foca aes lee atria tentel ver ho te preg! dntibeted chests pie Like exporting, licensing does not require large eapital l.. However, « disadvantages t Koensing, br the time lng {esi ad provide are ely Gan ober forms e7 68 Strategies Aste der ther ont ha phy ya em en Thin mth be aed yee exchange tonal Markets ped in the foreign fem ‘tle he plied kil focal partner 69 707/24/2019) ‘Complete ownership of a foreign subsidiary offers the domestic firm the highest degree of control of its international marketing and logistics strategies ‘Ownership of a foreign subsidiary requires the ‘most knowledge of international market compared to other forms of market entry. * + The firm is totally responsible for marketing and distributing its products. Direct ownership in a foreign market allows the company to compete more effectively on a price basis (no transportation, no import taxes or customs duty) n 2 1 Ownership isa long term commitment (losing Aexibitity) 1 Fixed facilities and equipment can not be disposed ‘quickly IThis sa serious drawback, should the firm decide to withdraw from the market due to sales o profit declines, o increased level of competition mn politically unstable countries, there is a possibility of nationalization of foreign-owned businesses. Optimal market entry strategy may change according to political, economie and markets ‘environments + Good market in one country may not be good in another B 74