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Global Business Questions: modes of entry, motivations, culture and more...

1.Describe the different modes of entry that companies use to do global business.

2.What motivations and what technological changes have occurred in the last few years that have propelled international business growth?

3.What role does culture play in global business?

4.What role does the Internet play in the growth of global business?

5.Explain some of the negative and positive aspects of globalization. (Think of both sides of the recent protests).

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1.Describe the different modes of entry that companies use to do global business.

The various modes of entry are:

1) Exporting: It is the simplest form of entry wherein companies do not set up operations in another country and simply export their products to other countries.

2) Wholly owned subsidiary: This is a mode of entry wherein companies set up a subsidiary in foreign country, either manufacturing or sales subsidiary, to exploit market opportunities. It requires investment to enter via this mode.

3) Joint Venture: It involves setting up manufacturing or sales operations in partnership with a local organization in the foreign country to take advantage of the resources and experience of the local partner.

4) Licensing: It involves transfer of proprietary technology to selected partner in return for licensing fees for production of ...

Solution Summary

Describe the different modes of entry that companies use to do global business.

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