Explore BrainMass
Share

Explore BrainMass

    Define the following modes of entry into foreign markets:

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Define the following modes of entry into foreign markets:

    Exporting
    Countertrade
    Switch trading
    Counter purchase
    Licensing, franchising
    Collaboration
    Strategic alliances
    Equity joint ventures

    Additionally, discuss the following:

    Motives, advantages, and disadvantages of each term above
    Overall control issues and risks
    If you were an international clothing manufacturer who was looking to reduce costs and improve efficiencies, which do you think is the entry mode that promises the best success?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:13 am ad1c9bdddf
    https://brainmass.com/business/international-markets/define-the-following-modes-of-entry-into-foreign-markets-452453

    Solution Preview

    When a company adopts an exporting mode of entry strategy, they begin directly selling their products into the foreign market without the aid of any other company or organization. This is generally the most unsuccessful entry mode and meets the highest rate of failure in the global market. When a company engages in a countertrade, they exchange goods or services with a company in a foreign country where the company wishes to establish entry. No money is exchanged, and is useful for companies that want to expand but do not have an excess of capital to work with. Switch trading is one form of countertrading where the buyer in one country pays ...

    Solution Summary

    Define the following modes of entry into foreign markets:

    Exporting
    Countertrade
    Switch trading
    Counter purchase
    Licensing, franchising
    Collaboration
    Strategic alliances
    Equity joint ventures

    Additionally, discuss the following:

    Motives, advantages, and disadvantages of each term above
    Overall control issues and risks
    If you were an international clothing manufacturer who was looking to reduce costs and improve efficiencies, which do you think is the entry mode that promises the best success?

    $2.19