Module -5

Module V: Introduction to
International Business Practices

Prof srikanth venkataswamy

Market Entry Strategies
1. Exporting.
Direct Or Indirect Exporting
1. Licensing
2. Contract Manufacturing.
3. Management Contract.
4. Assembly operations.
5. Fully owned Manufacturing facilities.
6. Joint venturing.
7. Counter trade.
8. Mergers & Acquisitions.
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 Market Entry strategies
10.Strategic alliance
11.Third country location.
12.Sourcing.
13.Collaboration.
Licensing:
It is a method of overseas operation whereby a company
in one country the licensor) enters into an agreement
with an company in other country (the licensee) to
use the manufacturing, processing, knowledge, trade
secrets, mark , name, brand, patent, technical
assistance, marketing or some other skill provided by
the licensor in exchange to the royalties, fees ,profit
sharing or income.
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Market Entry strategies
Joint venture: In the widest sense, any
form of association which implies
collaboration for more than a very
transitory period, is a joint venture.
Management contracts: under
management contracting, the
international marketer supplies
management know-how for a company
in a foreign country for which capital is
provided by the investor of the country
in the company is located.
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 Market Entry strategies
Contract Manufacturing: Assembly
operations
Under Contract manufacturing, the company
engaged in international marketing
contracts with the firms in the foreign
country to manufacturer assemble its
products while retaining the
responsibility of marketing and
distribution etc of these products .

Prof srikanth venkataswamy 5

Decision Criteria for International
Operations

1. Political risk
2. Market access
3. Factor costs and conditions
4. Shipping Considerations
5. Country information
6. Foreign Exchange
7. Creating : Product- Market Profile
8. Market selection Criteria

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