Module V: Introduction to International Business Practices Prof srikanth venkataswamy

Market Entry Strategies Exporting. Direct Or Indirect Exporting Licensing Contract Manufacturing. Management Contract. Assembly operations. Fully owned Manufacturing facilities. Joint venturing. Counter trade. Mergers & Acquisitions. Prof srikanth venkataswamy 2 2

Market Entry strategies Strategic alliance Third country location. Sourcing. 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. Prof srikanth venkataswamy 3 3

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. Prof srikanth venkataswamy 4 4

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 5

Decision Criteria for International Operations Political risk Market access Factor costs and conditions Shipping Considerations Country information Foreign Exchange Creating : Product- Market Profile Market selection Criteria Prof srikanth venkataswamy 6 6