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
- Slides: 29