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Entering Foreign Markets
12 chapter Entering Foreign Markets McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Chapter 12: Entering Foreign Markets
INTRODUCTION A firm expanding internationally must decide: which markets to enter when to enter them and on what scale how to enter them (the choice of entry mode)
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Chapter 12: Entering Foreign Markets
There are several options including: exporting licensing or franchising to host country firms setting up a joint venture with a host country firm setting up a wholly owned subsidiary in the host country to serve that market
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Chapter 12: Entering Foreign Markets
BASIC ENTRY DECISIONS There are three basic decisions that a firm contemplating foreign expansion must make: Which Foreign Markets? Timing of Entry Scale of Entry and Strategic Commitments Summary
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Chapter 12: Entering Foreign Markets
ENTRY MODES These are six different ways to enter a foreign market. Exporting Turnkey Projects Licensing Franchising Joint Ventures Wholly Owned Subsidiaries
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Chapter 12: Entering Foreign Markets
SELECTING AN ENTRY MODE The optimal choice of entry mode involves trade-offs. Core Competencies and Entry Mode Pressures for Cost Reduction and Entry Mode
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Chapter 12: Entering Foreign Markets
GREENFIELD VENTURE OR ACQUISITION? Should a firm establish a wholly owned subsidiary in a country by building a subsidiary from the ground up (greenfield strategy), or should it acquire an established enterprise in the target market (acquisition strategy)?
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Chapter 12: Entering Foreign Markets
Pros and Cons of Acquisitions Pros and Cons of Greenfield Ventures Greenfield or Acquisition
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