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Learning Objectives To learn how firms gradually progress  through an internationalization process. To understand the strategic effects of internationalization. To study the various modes of entering international markets.
NEED ,[object Object]
The Steps to Developing International Commitment ,[object Object],[object Object],[object Object]
Motivations for Going International ,[object Object],Profit advantage Unique products Technological advantage Exclusive information Tax benefit Economies of scale Competitive pressures Overproduction Declining domestic sales Excess capacity Saturated domestic markets Proximity to customers and ports Reactive Motivations
Modes of International Business Exporting Exporting Importing Licensing Franchising Foreign   Direct  Investment Interfirm cooperation
Licensing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits and Costs of Licensing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why go in for Licensing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Franchising ,[object Object],[object Object],[object Object],[object Object]
Key Reasons for Franchising Financial Gain Market Potential Saturated Domestic Markets
Need for Franchising ,[object Object],[object Object],[object Object],[object Object]
Interfirm Cooperation ,[object Object],[object Object],[object Object],[object Object]
Types of Interfirm Competition ,[object Object],Equity 2 More than 2 Informal Cooperation (no binding agreement Contractual  Agreement Equity Participation Consortia None None New Some Joint Venture
Contractual Agreements ,[object Object],[object Object],[object Object],[object Object]
Equity Participation ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Modes Of International Business

  • 1. Learning Objectives To learn how firms gradually progress through an internationalization process. To understand the strategic effects of internationalization. To study the various modes of entering international markets.
  • 2.
  • 3.
  • 4.
  • 5. Modes of International Business Exporting Exporting Importing Licensing Franchising Foreign Direct Investment Interfirm cooperation
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Key Reasons for Franchising Financial Gain Market Potential Saturated Domestic Markets
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.