Selecting and Selecting and Managing Entry Managing Entry

ModesModes

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e Chapter 13 - 2

Chapter PreviewChapter Preview

• Discuss the essential aspects of exporting

• Define each form of countertrade

• Explain each type of export/import financing

• Describe the advantages and disadvantages of each contractual entry mode

• Identify the pluses and minuses of each investment entry mode

• Identify strategic factors in selecting entry modes

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e Chapter 13 - 3

Step 1 Step 2

Identify a potential market

Match needs to abilities

Step 3

Initiatemeetings

Developing an Export StrategyDeveloping an Export Strategy

Step 4

Commit resources

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

International Business 5e Chapter 13 - 4

Degree of Export InvolvementDegree of Export Involvement

Direct exportingDirect exporting(sell to buyers)(sell to buyers)

Indirect exportingIndirect exporting(sell to intermediaries)(sell to intermediaries)

• Sales representatives

• Distributors

• Sales representatives

• Distributors

• Agents• Export management companies• Export trading companies

• Agents• Export management companies• Export trading companies

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