Text: International Business—Competing in the Global Market
By: Charles W. L. Hill
What are the various forms of market entry strategies and when would you employ them? In making this Management Decision you will be able to identify and apply the many choices of strategic options available to managers seeking to sell their products or services in foreign countries.
1. When a company makes a product, ships it to England and sells it there, this is an export (it brings money into the United States). Now the same company can open a factory in England, making and selling the products there. The money sent back to the U.S. is an export. Also, when the same company decides to pay a British factory to make the product for them and then sell it there in England, the money sent to the U.S. is defined as an export.
When a U.S. company sells a franchise to a British company, the money sent back each month to the U.S. is an export.
When a British person takes a vacation in New York City, paying money for hotels, meals, Broadway shows, etc… this too is an export since it is bringing money into the U.S.
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Think about the information you learned from Chapter 15.
You may also wish to explore the following U.S. Government web site. The U.S. Commercial Service is the part of the U.S. Department of Commerce which promotes U.S. exports. Many states (for example California) have their own programs specifically promoting exports from their states. U.S. COMMERCIAL SERVICE
Explain when you would employ the following market entry strategies (all of which are a different form of exporting since each strategy brings money into the U.S.):
1. Direct Exporting
2. Turn-key projects
3. Licensing
4. Franchising
5. Joint Ventures
6. Wholly Owned Subsidiaries
For the market entry strategies, specific examples that synthesize AND extend the text with additional evidence will receive the full percent evaluation mark.
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