Unit - 2 (Modes of entering I.B)-1.pdf

I Intem.tlonal llijif ~f(_odes·o(Enterlng Int_e rnatlonafBusfness...

I Intem.tlonal llijif ~f(_odes·o(Enterlng Int_e rnatlonafBusfness ".- KXl'{) RTI NG ~-- E.,portina I ti~ 11mplrit d 'd \y uied modo of cnterini fotelin m1rkot1. fJ\ w, of e,xportln1 mcludo: c... _ 6 ), Iittra-i> unount would be qu 1te llSI c ompared to that would be nocen~ry undcr·other...' ·. : ~ :.Oovcmmeot policies like export policies, import policie.s, export· financing, foreign e:xchinae ·etc.· ·... risk tho company.undcrsta.nds the cultui:c, ell~ Man:eting factors like· im age, -dis.trlbution networks, respo11.1lvencss lo the customer, 1 1 1 d 11lly The company cnn -~rilcr -thc ·hoit coun~~ " l-tn Rhk: &porttni mvo Vl:t ct st 111 d the mutt< of the h~ coun: fr',:: ho~l country' market. A British coinpnliy f!l~J~. fa, l-m k , If I~ prod~! is acc,cp n Bo.r 4 I prtstnrs this mode of !ht! Dr/I/sh ro_ 0 rrtr,niiy,. custciliter · wareneu and cuatomer preferences, 1,ogutical considua/1011: 1'.hcsc fie.tors include physical distribulion cost,, warehousing 1~is mode to uport J&ms to ap~............... : costs. paeka:ging; transponing, inventory carrying costs etc. Dtsirlbutlon·lssuu: These include own distribution networks, networks of host coun try's companies. Japanese companies like Sony, Mfn·olta and Hitachi rely on the dis lribution oetwotks- of their subsidiaries in the host eountty,..~ o\i-tt~ K'1 rti~y re~'!'i'f{y-- ,~~1!"11 ris'\,;. i a ~ big order from. )Osco, one. ,'.:.BOX4.2:INTERCORPORATETRANSFERSOFGENERALMOTORS , , t~ ret1lfen. C~tven_.ts ·UK ~rm n... 11, tv. of tnilt preitNts - jelllU, d mninaf\ ttts. liecauie tti dcln'oistte· 'in~g:~~"1s\i~ir~~r:u'r, : ,1~~~. ,,...w....i. Chivers sees 1IX\rtunlty. The nrm. ~Y.rt. /itly s (LAQ) SU~ dlv.l{l6J\1n.:_$,o4.th,;t./herl~;Jts ;~~ « nt er Its revenues_rtom _txports, « , -Gth'rl1n.y,.and. Hollii'nd Its latv'ut 0) an~ Middle E~S~:Opcratlqn~ (!'1O):sub ,rhls. :i;eneral Mato~ -0pted.·tor, tbe··ttl'ate,ily· or·. south Arnetlcan· inie'rket is :fo. focite Its. t;iii-tn~ fiic!tltie~ 1!iJ~e, s2-ut1( · ~iner!cl!! )ii vtew'..1>,lQw'l!r:1t~a11r-:~os°t'~_lfd,Jog1~cs ·.. ,.. etrlil ~s~, ltpi:'6il~~ei. {ti· ~0 ~~ 'Al_l'.lerfcan :· · t'.Mittra\isltrt~e:~rodu~\(); -0~~ ni rkets ~ ·,'Mfddle East :e1:c., I.or sale, · llfotlvatl on rcr Exporting: Motivations ·for:cxpOffll\J.~e-Jiroac'tiye:and reacH.,~.--~~l:~·-..~~... motivationl are opportunities available in-lhe'host.counfrl. S~~:Anili.i(lq";t face, {rt. ,,.,-Mei food p,od11tts ~xp?>i-lecf-its prod_ucli ro},{~co asNaledHH ellsheil·I produ~u. · ·· !?~' _·.iport. ln.te.rm.tdlad.es t: Export intermcdi:uies perform a variety of function., and enable 0 1 tht ~ill,t_i,mpanies.to e,c{l0rt thefr gooort Mahag,m~11l.comp1nics:.act ~'-""E department oftbc cxporting..fum (its clicnl). wh,n tht Japantst economy starltd s/owl{lg down./n./~9~.1!($e 'Box ~.J.) , Tiiese compiiuciacTui:omm iu ion: agents foi°:CXports-:-or 'ibcy talce tittle to the goods. C~~ 1)1_~. domcslic.companies desire lo export tbo goods form a co- Form.s of ExportJng ~ ti\'C Joticty,.which undcrtaltes th~ cxwt:ting.operations of its members. Forms ot exportinc jncl1;~e: indii'ccl exportiirg; 'dii'cct_e~poi:ting Jiid-irjtncorpoiaie. tr1n1fcrt. lntunatlonal Ir.!!~i1!R!Vl,Y.: This company is engaged ·io directly. exporting and I. Indlr«:t Exportlaz. :uiiporting. lt b\lys ·the goods from the d'ott1esiic c:ompapiea.and eiqx,ns. Therefore, th~ fo Indirect e~portiili i_s cxp~ryini the ~roducu either iri 11)~1' ~ri'gin:il fonn.or the rn~Q.~ &cods by selling them· ·,o the 'intern&tional trading company. ·COlllpanies ca:n-.eX:port !heir _ ro!!".Ill 12w&ri.:~ tl!r2ii:Cli iilotbct domcstic'tomp&p)',, ~artol!S.publlshm.~nl(ldlfl: /n~!f!'~~ 1"onll[actur,ri' ,(genii: They work on a commis~ioid;ui~. They solicit ~om cs tic ordcn /{ima/aya PublisMng Hou.st.st// thelr,prt>ducU,./.t., ·boo~..various v:port r~ In. J~dll/, !"h'/f/t,ln for "fciteicn. manufacturei-s. tvr,, u:porl th,u boob Jo various foreign co~,jtri_u. ' l,{/l/lufacturcrs ' Eiport A;gt(IA: _These agents also won on · commlasion basis. They l. D!r«t Exportln1· · : ·. ··. ~\q li_c dom.~ tie manufacturers' produc_ts· iii the foreign markets and..act u their foreign -~,~ depanm~t. Direct cxporti~g -~ \ling _l_hc projl~fll.iil i forcipi c,q_li_n_~ ~ii:ec11r !~rough Jrs cfll}p.!i"lion lrrn&qn nts or lhniuch ·hall countiy'j oo,npiiiy, D~kto 'Rlibbll!i' lt.!.i/1illy;~ _poi;t_ ~ :ii, Jee· ~". ~n.d..Jmeorl Bi:ourii Jh.~ _broken bridge the gap between exporters ind importers : : ;.1h0 R~ui, i_n 199_0 !Iii.later "Pl'~¢ 1◄ o.1il1 ~ "'.i~ Rusiia~ p ~·m; P!'n1lly, -lil. :I~~ It lit bnng thCie two· ptrtics toicllicr. · · " eel ,11 _lce'&nnfliC