Purchase Solution

Define the following modes of entry into foreign markets:

Not what you're looking for?

Ask Custom Question

Define the following modes of entry into foreign markets:

Exporting
Countertrade
Switch trading
Counter purchase
Licensing, franchising
Collaboration
Strategic alliances
Equity joint ventures

Additionally, discuss the following:

Motives, advantages, and disadvantages of each term above
Overall control issues and risks
If you were an international clothing manufacturer who was looking to reduce costs and improve efficiencies, which do you think is the entry mode that promises the best success?

Purchase this Solution
Solution Summary

Define the following modes of entry into foreign markets:

Exporting
Countertrade
Switch trading
Counter purchase
Licensing, franchising
Collaboration
Strategic alliances
Equity joint ventures

Additionally, discuss the following:

Motives, advantages, and disadvantages of each term above
Overall control issues and risks
If you were an international clothing manufacturer who was looking to reduce costs and improve efficiencies, which do you think is the entry mode that promises the best success?

Solution Preview

When a company adopts an exporting mode of entry strategy, they begin directly selling their products into the foreign market without the aid of any other company or organization. This is generally the most unsuccessful entry mode and meets the highest rate of failure in the global market. When a company engages in a countertrade, they exchange goods or services with a company in a foreign country where the company wishes to establish entry. No money is exchanged, and is useful for companies that want to expand but do not have an excess of capital to work with. Switch trading is one form of countertrading where the buyer in one country pays ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Global Business Environment

    Reference Modes of Entry into International Markets (Place). (2010).

  • Franchising: Global Markets

    What are the benefits of franchising and how does it differ from other modes of entry? 1. McDonald's and other fast food restaurants have benefited by using franchising as a mode of entry into different countries.

  • What are the methods by which firm can enter foreign markets

    115989 Methods to Enter Foreign Markets What are the methods by which a firm can enter foreign markets? Firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode.

  • Main Entry Modes in Foreign Countries

    Risk and Selection of Entry Mode Risk perceptions are thought to determine a firm's selection of entry mode into foreign markets. The entry mode is also determined by the risk and control trade-off.

  • Economics

    Though, there are several other modes of foreign market entry, but most of the companies seek to enter into this market by adopting this method due to some of its beneficial features.

  • First Mover Advantage and 6 Modes of Entry

    427735 First Mover Advantage and 6 Modes of Entry Explain the First Mover Advantage and the six modes of entry into foreign markets. Identify a foreign market that you will be entering. What are the advantages and disadvantages of each?

  • Global modes of entry into foreign markets

    A good site for a description of these: http://www.quickmba.com/strategy/global/marketentry/ A discussion on the basic modes of entry of businesses into foreign markets and why each is preferable for businesses.

  • Manufacturing Costs and Balance of Payments

    various foreign entry modes.

  • Country risk analysis, mode of entry & economic powers

    What are the various modes of entry for a multinational enterprise (MNC) to expand operations or sales to another country? Why would an MNC select one mode of entry over another?

View More Related Solutions