MAN 3600 Kim Exam 3_(Ch.13) NOTES
Study online at https://quizlet.com/_898g6p
1. Chapter 13 - Models
of Foreign Market En-
try
2. International Market Exporting
Entry Modes - Direct
- Indirect
Importing
- Direct
- Indirect
• Licensing
• Franchising
• Interfirm Cooperation
• Foreign Direct Investment
3. 3 broad classifications 1. Export Mode
of Entry Methods 2. Contractual Mode
3. Investment Mode
4. Export entry Modes Indirect & Direct exports
- The firm manufactures in one country (usually the home country) conducts
marketing, distribution, and customer service activities in a foreign export
market.
- Low Risk & Low Control; but High Flexibility
- Usually 1st Foreign Entry strategy
- Popular with SME's
- 100% Externalized --> Accomplished thru the firm's own Marketing sub-
sidiary abroad or thru intermediaries.
, MAN 3600 Kim Exam 3_(Ch.13) NOTES
Study online at https://quizlet.com/_898g6p
5. Who is export entries SME's
popular with?
6. Contractual entry Licensing or Franchising agreements
Modes - McDonalds, Dunkin' Donuts, Century 21 Real Estate, and many others have
used franchising to internationalize worldwide.
->Shared control & risk; but Split ownership
7. Investment entry Acquisition or
Modes Creating new subsidiaries
- firm establishes a presence in the foreign market by investing capital and
securing ownership of a factory, subsidiary, or other facility there.
--> High Control & High Risk, But Low Flexibility
--> 100% Internalizing
8. Hybrid entry Mode Strategic Alliances & Joint Ventures
- some equity investment/ownership is involved
--> High Risk
9. IB (Intl Business) Ex- When the level of control goes UP, so does the level of Risk
perience & choice of
Entry modes into Mar- If you have Higher Ownership, then you have More Control and More Risk
kets - but lower flexibility
Ownership vs. Control
Study online at https://quizlet.com/_898g6p
1. Chapter 13 - Models
of Foreign Market En-
try
2. International Market Exporting
Entry Modes - Direct
- Indirect
Importing
- Direct
- Indirect
• Licensing
• Franchising
• Interfirm Cooperation
• Foreign Direct Investment
3. 3 broad classifications 1. Export Mode
of Entry Methods 2. Contractual Mode
3. Investment Mode
4. Export entry Modes Indirect & Direct exports
- The firm manufactures in one country (usually the home country) conducts
marketing, distribution, and customer service activities in a foreign export
market.
- Low Risk & Low Control; but High Flexibility
- Usually 1st Foreign Entry strategy
- Popular with SME's
- 100% Externalized --> Accomplished thru the firm's own Marketing sub-
sidiary abroad or thru intermediaries.
, MAN 3600 Kim Exam 3_(Ch.13) NOTES
Study online at https://quizlet.com/_898g6p
5. Who is export entries SME's
popular with?
6. Contractual entry Licensing or Franchising agreements
Modes - McDonalds, Dunkin' Donuts, Century 21 Real Estate, and many others have
used franchising to internationalize worldwide.
->Shared control & risk; but Split ownership
7. Investment entry Acquisition or
Modes Creating new subsidiaries
- firm establishes a presence in the foreign market by investing capital and
securing ownership of a factory, subsidiary, or other facility there.
--> High Control & High Risk, But Low Flexibility
--> 100% Internalizing
8. Hybrid entry Mode Strategic Alliances & Joint Ventures
- some equity investment/ownership is involved
--> High Risk
9. IB (Intl Business) Ex- When the level of control goes UP, so does the level of Risk
perience & choice of
Entry modes into Mar- If you have Higher Ownership, then you have More Control and More Risk
kets - but lower flexibility
Ownership vs. Control
