DIFFERENT MODES OF ENTRY INTO INTERNATIONAL BUSINESS, International business, MODES OF ENTRY, Licensing process, Licensor leases, Management contract, strategic alliances, Acquisition, Merger, Joint ventures, mergers and acquisitions, Modes of FDI. Subscribe to Vision Academy for Video Assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw

1. DIFFERENT MODES OF ENTRY
INTO INTERNATIONAL
BUSINESS
P R E S E N T BY,
T H E J A S W I N I S
2 N D M . C O M
G . F. G . C . W
H O L E N A R S I P U R A

2. CONTENT
Introduction to international business
Meaning of international business
Modes of entry into international business
Conclusion
Bibliography

3. INTRODUCTION
Business activities done across national borders is international business. The
international business is the purchasing and selling of the goods, commodities
and services outside its national borders. Such trade modes might be owned by
the state or privately owned organization.

4. MEANING
International business conducts business transactions all over the world. These
transactions include the transfer of goods, services, technology, managerial
knowledge, and capital to other countries. International business involves exports
and imports.
International business is also known as a global business or an international
marketing.

5. MODES OF ENTRY
Exporting
Exporting is the process of selling goods and services in one country to other
country is called as exporting.
Forms of exporting
Indirect
Exporting
Direct
Exporting
Intra-Corporate
Transfer

6. CONT’D
 Indirect involvement means that the firm participants 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.
Example Indirect trade
Direct trade
china Hong Kong Trading partner

7. CONT’D
 Intra-corporate transfer means a company transfers an item, or employee, to
work temporarily in a different office, often in another company.
Example
Licensing
licensing is when a firm, called the licensor, leases the right to use its
intellectual property technology, work methods, patents, copy rights, brand names,
or trademarks – to another firm, called the licensee, in return for a fee.
U.K
• Company A
Malaysia
• Company A

8. CONT’D
 Licensing process
Licensor leases the right
to use intellectual
property.
Licensee uses the intellectual
property to create products.
Pays a royalty to licensor.Earns new revenues with low
investment.

9. CONT’D
Franchising
under franchising, an independent organisation called the franchisee
operates the business under the name of another company called the franchisor. In
such agreement 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.

10. CONT’D
Specialized entry modes
 Contract manufacturing
 Management contract
 Turnkey project
 Contract manufacturing is outsourcing entire or part of manufacturing
operations.

11. CONT’D
 Management contract is an agreement between two companies where by 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.
 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.

12. CONT’D
FDI with strategic alliances
Modes of FDI through alliances are:
 mergers and acquisitions
 Joint ventures
 Merger they 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.

13. CONT’D
 Acquisition when one company takes over another and clearly established itself
as the new owner, the purchase is called an acquisition.
 Joint ventures is an entity formed between two or more parties to undertake
economic activity together.

14. CONCLUSION
An organization has a number of different entry modes to choose from it
internationalize its operations. And also focus on the what organizational
circumstances, goals and objectives.
Companies are prefer to enter international markets that rank high in
attractiveness, low market risk and they can enjoy a competitive advantage.

15. BIBLIOGRAPHY
https://www.toppr.com>business-studies>international business.
https://bbamantra.com>modes-of-entry-in-foreign markets.
https:www.slideshare.net>mobile>modes-of-entry-into-international-business.