Unit 6 Reaching Global Markets Means of International

Unit 6 Reaching Global Markets – Means of International Expansion and Restrictions to Trade

Ways to grow and enter foreign markets

Entry strategies • • • Licensing Franchising Contract manufacturing (outsourcing) Invest directly (FDI) Enter a joint venture (JV) or strategic alliance Merge or acquire

Licensing Totally owned facilities

Franchising

Contract manufacturing

Foreign direct investment

Joint venture (JV) / strategic alliance

Mergers Popco

Restricting trade and growth

Ways to restrict trade • • • Tariff: a tax, also called an import duty Dumping Import quota Embargo Foreign exchange control Currency devaluation

In your groups… • Give 3 reasons why a government would want to restrict trade

Why restrict trade? • Protect growing industries • Protect health • Stabilize credit rating of country

Why restrict trade? • • Meet domestic demand Protect jobs Raise prices Retaliation

Tariff

Dumping

Import Quota

Embargo

Foreign Exchange (forex) control

Currency devaluation

Remaining questions

Does chasing low labor costs = exploitation?

Value in network coordination

Value in cooperation

Will services industries save developed economies?

Business and politics

Business and politics

Business and politics