Inter Bus ( Task 7)
TASK 7 IMPORT, EXPORT, COUNTER-TRADE AND MODES OF ENTRY
Why do companies go global? Just to increase sales of a specific product or service? And how do companies go global? To understand this you need to know about entry modes companies use to “go international.” Leaders who choose to enter the global market must select and manage issues such as exporting, importing, and counter-trade; contractual entry modes; and investment entry modes.
Why Spiderman went global.
Read License to Thrill in the ebook Chapter 13.
What did Marvel Enterprise do?
Why did they choose this route?
What effect did it have ultimately on visibility and sale of their products?
See if you can find another company that went international. Did they have similar success? What product were they promoting?
What does this suggest about why and how companies go global?
WatchPlay Video
Learn about Entry Modes – How companies get their products/services into a market and how they are financed.
Read on exporting, importing, and counter trade.
why export; developing an export strategy; direct and indirect exporting
counter trade – types
WatchPlay Video
WatchPlay Video
Read Chapter 13 in ebook on financing methods for export/import business. (advance payment, documentary collection, letter of credit, and open account)
Learn about Special Circumstances Entry Modes.
Read on Contractual Agreements for services or products that cannot be sold on the open market – licensing, franchising, management contracts, and turnkey projects
WatchPlay Video
Read about Investment Entry Modes
WatchPlay Video
Locate a minimum of 5 companies that employed different types of entry modes when they went global. Make a table, graphic, or infographic to show their strategies and why it was best for their product/services.
Solution Preview
Entry
Entering an overseas market requires the company to make big investments and encompass strategies that will enhance the profits of the company abroad. Engaging in business abroad requires massive inputs from both the company and its staff.
(312 words)