UNIVERSITY OF MUMBAI

PROJECT REPORT ON
STUDY ON FOREIGN ENTRY ALTERNATIVES
(STRATEGIC MANAGEMENT)
MASTERS OF COMMERCE
(BUSINESS MANAGEMENT)
SEMESTER 1
2014-15
SUBMITTED BY
MR. SALMAN MAKDA
ROLL NO.:11
PROJECT GUIDE
MS. POONAM KAKKAD
K.P.B HINDUJA COLLEGE OF COMMERCE
315, NEW CHARNI ROAD, MUMBAI-400 004

SALMAN MAKDA ROLL NO: 11 .COM (BUSINESS MANAGEMENT) 1stSEMESTER STUDY ON FOREIGN ENTRY ALTERNATIVES SUBMITTED BY MR.M.

Salman Makda of M. Project Guide ________________ Course Coordinator ________________ Internal Examiner ________________ External Examiner ________________ Principal ________________ Date: ______ Place: Mumbai.1 [2014-2015] has successfully completed the Project on “STUDY ON FROEIGN ENTRY ALTERNATIVES” under the guidance of Ms. Poonam Kakkad. .CERTIFICATE This is to certify that Mr.Com Business Management Semester.

Mr.1 (2014-2015).Com – Business Management. semester. hereby declare that I have completed the project on “STUDY ON FOREIGN ENTRY ALTERNATIVES” The information submitted is true and original copy to the best of my knowledge.DECLARATION I. Salman Makda student of M. SALMAN MAKDA .

I would like to give my thanks to the Project Guide Ms. B. I am also thankful to the library staff of K.com Dr.ACKNOWLEDGEMENT I owe my special thanks to the Principle Dr. Chitra Natrajan and the Co-coordinator of M. (Ms) Minu Madlani for giving me an opportunity for this project work. P.Poonam Kakkad for her guidance and kind assessment that she has provided me and the inspiration in valued guidance and ideas throughout the project. Hinduja College Of Commerce who cooperated with me and even all those seen and unseen hands and heads which helped me in the completion of this project. .

With the expiration of the Agreement on Textiles and Clothing. TITLE PAGE CERTIFICATE DECLARATION ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION OBJECTIVES OF THEY STUDY METHODS OF RESEARCH SCOPE OF THE STUDY LIMITATIONS CHAPTERS SCHEMES CONCEPTUAL FRAMEWORK MODES OF ENTRY INTO FOREIGN MARKETS EXI T STRATEGIES CONCLUSION BIBLIOGRAPHY 1 1 1 2 2 2 3 7 31 36 37 EXECUTIVE SUMMARY For developing countries.2 1.3 1. This has important implications for the allocation of export-oriented production and is likely . 1 1. the textiles and clothing industries have traditionally been an important gateway to industrialization and increased exports.INDEX CHAPTER NO.5 2 3 4 TOPICS PAGE NO. the quota system originally set up through the Multifibre Arrangement was phased out.4 1.1 1.

the MFA was reformed on four occasions. the U. the Multifibre Arrangement (MFA) imposed quanta restraints on textile and apparel imports.S. with each revision attempting to accommodate the concerns expressed by the domestic industry lobbyists.Governing trade policy in textiles and apparel for thirty years (1974-2004).to affect in various ways a large number of developing countries that rely heavily on such exports. While the demise of the MFA forced countries to remove the quota restraints that were imposed under the multilateral framework. foreign competitors were able to take advantage of various opportunities to transship their goods. and consequently. Despite increasingly restrictive trade barriers. An institution originally intended to protect the interests of importing developed countries. textile and apparel market. and to further explain the longevity of quantitative restraints on textiles and apparel.This paper applies Douglas North’s theoretical framework concerning the process of institutional change in order analyze the principal forces underlying the MFA’s multiple reforms.S. continues to maintain considerable trade barriers against textile and apparel imports. . continued to acquire an increasing share of the U.