Modes of entry into international business can include exporting/importing, foreign direct investment, licensing, franchising, joint ventures, turnkey projects, mergers and acquisitions, and management contracts. Exporting involves selling goods and services internationally, while importing involves purchasing foreign goods and services. Foreign direct investment involves investing in foreign businesses. Licensing and franchising allow firms to use intellectual property and brand names owned by other companies. Joint ventures combine resources and share control between two or more firms.

1. Presented By:-
Abhinav Singh
Modes of entry in
International
Business

2. 
International business comprises all
commercial transactions (private and
governmental, sales, investments and
transportation ) that take place between
two or more regions, countries and
nations beyond theirs political
boundaries.
INTERNATIONAL BUSINESS

3. Modes of entry in
International Business
3
1)Export-import trade
2)Foreign direct
investment
3)Licensing
4)Franchising
5) Joint venture

4. OTHER MODES ARE:
6) Turn key project
7) Mergers and Acquisitions
8) Management contract

5. • Meaning of Export the thing which we produce
in access we can sell in market or international
market to earn profit.
For E.g- Rice, tea etc.
• Import means the thing we don’t have or we are
running with the storage of that particular
thing we can import from different city's
,region , state or country is called Import.
For E.g Latest tech, weapons.

6. Methods of
import and
export
Direct
involvement
Indirect
involvement

7. Firms can export and import using
two methods:
• Indirect involvement: means that the
firm participates in international
business through an intermediary
and does not deal with foreign
customers or markets.
• Direct involvement :means that the
firm works with foreign customers
or markets with the opportunity to
develop a relationship.

8. FDI stands for Foreign Direct Investment, Foreign direct
investment is investment of foreign assets into domestic
structures, equipment, and organizations. It does not
include foreign investment into the stock markets.

9. LicensingIn this mode of entry, the domestic
manufacturer leases the right to use its
intellectual property, i.e., technology, work
methods, patents, copy rights, brand names,
trade marks etc. to a manufacturer in a
foreign country for a fee.
E.g- Microsoft Office

10. Franchising
Under franchising, an independent
organisation called the franchisee operates
the business under the name of another
company called the franchisor. In such an
arrangement the franchisee pays a fee to the
franchisor.
Franchising is a form of Licensing but the
Franchisor can exercise more control over
the Franchisee as compared to that in
Licensing. E.g KFC. Kumar sweet shop
d.dun

11. Franchising
• Governed by: Securities law
• Registration: Required
• Territorial rights: Offered to
franchisee
• Royalty payments: Yes
• Use of trademark/logo: Logo
and trademark retained by
franchiser and used by
franchisee.
• Examples: McDonalds,
Subway, 7-11, Dunkin Donuts.
• control: Franchiser exercise
control over franchisee.
LICENSING
• Contract law
• Not required
• Not offered; licensee can
sell similar licenses and
products in same area
• Yes
• Can be licensed
• Examples: Microsoft Office
• licensor does not have
control over licensee.

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Turnkey Project
• A turnkey project is a contract
under which a firm agrees to
fully design, construct and
equip a
manufacturing/business/service
facility and turn the project over
to the purchaser when its ready
for operation, for a
remuneration

13. A joint venture is an entity formed between two
or more parties to undertake economic activity
together. The parties agree to create a new entity
by both contributing equity, and then they share
in the revenues, expenses, and control of the
enterprise
Sony-Ericsson is a joint venture by the
Japanese consumer electronics company Sony
Corporation and the Swedish telecommunications
company Ericsson to make mobile phones
Joint Ventures

14. Mergers and Acquisitions
What Does Merger Mean?
The combining of two or more companies, generally by offering
the stockholders of one company securities in the acquiring
company in exchange for the surrender of their stock.
Pixar-Disney Merger
Acquisition
When one company takes over another and clearly
established itself as the new owner, the purchase is
called an acquisition.
HDFC Bank acquisition of Centurion Bank of Punjab for $2.4
billion
Microsoft acquisition of Nokia

15. Management contract
A management contract is an agreement between two
companies whereby one company provides managerial
assistance, technical expertise and specialized services to
the second company for a certain period of time in return
for monetary compensation.

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