bài giảng Chapter 3 - Entry modes of international business sau đây với nội dung nói về chế độ nhập cảnh của kinh doanh quốc tế. | CHAPTER 3 ENTRY MODES OF INTERNATIONAL BUSINESS Click to add your text 1 Basic entry decisions I Entry Modes II 2 2 I. Basic entry decisions . to enter to enter those markets On to enter those markets 3 1. Which foreign markets 4 Political stable developed + developing nations with free market systems Political unstable developing nations with mixed or command market systems 4 2. Timing Of Entry 5 . entrant entrant 5 6 .advantages 6 Switching Costs The negative costs that a consumer incurs as a result of changing suppliers, brands or products. Although most prevalent switching costs are monetary in nature, there are also psychological, effort- and time-based switching costs. 7 7 3. Scale Of Entry 8 scale scale 8 There are . when deciding which markets to enter, and the timing and scale of entry, just decisions that are associated with different levels of 9 9 II. Entry Modes 10 1. 11 11 Advantages 12 13 An ad valorem tariff: a of the value of imported good 13 A specific tariff: a fixed amount of money per unit of imported good 14 14 A compound tariff: of specific and ad valorem tariffs 15 15 16 16 17 A agreement is an arrangement whereby a licensor grants/gives the rights to to another entity (the licensee) for a specified period, and in return, the licensor receives a from the licensee 18 2. 18 Advantages Reduces . of establishing operations overseas Overcomes restrictive barriers Others can business applications of IPs 14-10 19 19 Disadvantages Lack of Limits a firm’s ability to coordinate strategic moves Proprietary (or intangible) assets could be 20 20 3. A specialized form of licensing Franchisor + Sells . to the franchisee + Insists that the franchisee agree to abide by as to how it does business 21 21 Commercial Law (Vietnam) Article 284. Commercial franchise Commercial franchise means a commercial activity whereby franchisors permit and require franchisees to undertake by themselves to purchase or sell goods or provide services on the following conditions: 1. The purchase or sale of goods or provision of services shall be conducted in accordance with methods of business organization prescribed by franchisors and associated with the franchisors' trademarks, trade names, business knows-how, business slogans, business logos and advertisements. 2. Franchisors shall be entitled to supervise and assist franchisees in conducting their business activities. 22 22 23 Advantages Costs and risks of opening up a foreign market A global presence 24 24 Disadvantages Competitive attacks 25 25 26 4. 27 27 27 Firm C Home country Host country New entity in host country - both have equity 50% 50% Contribution Technology Manufacturing expertise Firm A Firm B Contribution Distribution network Labour Finance Local market knowledge 27 A is the establishment of a firm that is jointly owned by two or more otherwise independent firms. 28 Advantages Local partner's Costs and risks of opening a foreign market Only . entry mode 29 29 Disadvantages Giving of its technology to its partner Lack of . . 30 30 5. . % of stock 31 31 Advantages . the risk of losing control control over operations in different countries . . 32 32 Disadvantages cost and risk 33 33 Extent of investment and risk 34 Degree of ownership and control . . . . Low High High 34
