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Exporting represents the most straightforward and commonly adopted strategy for entering foreign markets. It offers several advantages and can take various forms, each with its own set of considerations and the involvement of different export intermediaries. ...

International licensing is a strategic approach to market entry where a domestic manufacturer (licensor) leases the rights to its intellectual property, such as technology, patents, copyrights, brand names, and trademarks, to a foreign manufacturer (licensee) ...

International franchising is a form of licensing where the franchisor grants the franchisee the right to operate a business under the franchisor's brand, providing more control over operations compared to traditional licensing. This mode of entry is rapidly gr...

Contract Manufacturing (Outsourcing) Contract manufacturing, also known as outsourcing, is a practice where companies delegate part or all of their production to external firms, focusing instead on aspects like marketing and design. Advantages Focus on Core...

Mergers and Acquisitions Mergers and acquisitions (M&A) involve a domestic company merging with or purchasing a foreign company to enter international markets. This strategy provides immediate access to manufacturing facilities, marketing networks, new technol...

Foreign Direct Investment (FDI) refers to the investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the foreign country, includ...

When companies decide to expand internationally, they can choose from several modes of entry. Each mode has its advantages and disadvantages, and the choice depends on the company's strategic objectives, resources, and the market environment. Below is a table ...

International business is the process of linking the global resources with global people. Evolution of International Business: A Concise Overview Early Integration (19th Century): Increased economic integration marked by advancements like steam ships. Seeds...

Accurate Information International business requires not just accurate but also timely information. Accurate information is critical for making informed decisions in the global marketplace. Example: A company like Apple needs accurate data on local consumer ...

International Business (IB) plays a pivotal role in the global economic landscape, offering companies a pathway to growth, profitability, and competitive advantage. Here are the key factors driving the need and highlighting the importance of engaging in Intern...

The journey of a company's expansion into international markets can be delineated through five distinct stages of internationalization. This progression encapsulates the evolution from a domestically focused entity to a globally integrated enterprise, each sta...

The footprint of Multinational Corporations (MNCs) in India has been expanding significantly over the past few decades. Their impact spans across various dimensions such as Foreign Direct Investment (FDI), job creation, market expansion, contribution to GDP, C...

The OECD Guidelines for Multinational Enterprises are recommendations provided by governments to multinational enterprises operating in or from adhering countries. They provide non-binding principles and standards for responsible business conduct in a global c...

The EPRG framework, conceptualized by Wind, Douglas, and Perlmutter, offers a nuanced perspective on how company management views and approaches international markets. This framework is instrumental in categorizing management attitudes into four distinct orien...

The theories of international trade are essential for understanding the mechanisms and principles that govern trade between nations. These theories have evolved over centuries and offer insights into the reasons behind trade patterns, the benefits of trade, an...

Governments worldwide implement various trade policies to regulate imports and exports, aiming to protect domestic industries, promote economic growth, and sometimes respond to political and diplomatic relations between countries. Among these policies, tariff ...

Understanding the external environment is crucial for businesses operating on an international scale. The PEST analysis framework helps in analyzing the Political, Economic, Socio-Cultural, and Technological environments that can influence business operations ...

The Strategy Evaluation Process is a systematic approach to assessing an organization’s strategy to ensure it remains effective, relevant, and aligned with the organization’s goals. Evaluation helps organizations make necessary adjustments based on performance...

The Three Strategy Evaluation Activities are essential steps that help organizations assess and maintain the effectiveness of their strategies. These activities ensure that the strategy remains aligned with organizational goals, adapts to changing conditions, ...

The Balanced Scorecard (BSC) is a strategic management tool developed by Robert Kaplan and David Norton. It provides a comprehensive framework for tracking and managing an organization’s performance by going beyond traditional financial metrics. The balanced s...