INTERNATIONAL

BUSINESS
Instructor: Linh Nguyen
GENERAL LEARNING OUTCOMES

International business issues

Cultures difference

Country/industry attractiveness

Entry mode

International Strategy
KEY LEARNING OUTCOMES

TIME TO ENTER MARKET

DIFFERENCE ENTRY MODE

OPITMAL ENTRY MODE CHOICE

Basic entry decisions

Which foreign Timing of

markets? entry

Scale of entry
& strategic
commitments
Timing of entry
Entry is early when a firm enters a foreign market before other
foreign firms
Entry is late when a firm enters after other firms have already
established themselves in the market

Discussion: Advantage and disadvantage of first-movers

KEY LEARNING OUTCOMES

DIFFERENCE ENTRY MODE

OPITMAL ENTRY MODE

CHOICE
ENTRY MODE

Greenfield
Wholly
owned
Acquisition

Strategic Joint Venture/contract

alliance manufacturing

Exporting Licensing/Franchising
Licensing and franchising

Licensing

Franchising
IMPACTS THE CHOICE OF ENTRY MODE

INTERNAL FACTORS EXTERNAL FACTORS

• Sociocultural distance
• Company size
• Demand uncertainty
• International experience
• Market size & growth
• Product complexity
• Trade barriers
• Product differentiation
• Intensity of competition
advantage
• Number of relevant
intermediaries
OPTIMAL CHOICE

Technology Management Global

know-how know-how standardization

Wholly Joint Wholly

owned venture owned
ACQUISTION STORIES