Upload
lawrence-cunningham
View
223
Download
1
Tags:
Embed Size (px)
Citation preview
FHF
Exporting & importing
Trading companies
Licensing and franchising
Contract manufacturing
Joint ventures
Direct investment
Multinational corporations Many companies’ involvement in international trade
begins with importing goods for resale
Getting Involved in Getting Involved in International BusinessInternational Business
3-24
FHF
Countertrade Agreements Bartering products for other products instead of
for currency
Export agents are middlemen that help companies by handling their international transactions
Trading Company Buys goods in one country and sells them to
buyers of another country
Handles all activities required to move products from one country to another
Getting Involved in Getting Involved in International TradeInternational Trade
3-25
FHF
A trade arrangement where one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and production processes in exchange for a fee or royaltyMany products are licensed and produced by local companies internationally
LicensingLicensing
3-26
FHF
A form of licensing where a company (franchiser) agrees to provide a franchisee a name, logo, operational guidelines, products, etc., in return for a financial commitment and the agreement to conduct business in accord with the franchiser’s standard of operationMcDonald’s is the world’s largest franchise in terms of revenues
FranchisingFranchising
3-27
FHF
The hiring of a foreign company to produce a specified volume of the initiating company’s product to specificationThe final product carries the domestic firm’s nameCommon in high-tech industries, automotive industry and food manufacturingMany clothing manufacturers use contract manufacturing
Contract ManufacturingContract Manufacturing
3-28
FHF
The relocation of a business process by a company or subsidiary to another countryDifferent from outsourcingThe company retains control of the processNot subcontracting to a different companyAppealing because of lower wages, high skills, time zone differences
OffshoringOffshoring
3-29
FHF
Other Forms of Engaging in Other Forms of Engaging in International TradeInternational Trade
Joint VentureThe sharing of the costs of operation of a business between a foreign company and a local partner
Strategic AllianceA partnership formed to create competitive advantage on a worldwide basis
Direct InvestmentThe ownership of overseas facilities
3-30
FHF
The highest level of international business involvement
Operates on a worldwide scale without significant ties to a single nation or region
Largest MNCs are wealthier than most countries Antiglobalization activists contend that MNCs are
responsible for growing wealth disparity and misusing scarce resources
Multinational CorporationsMultinational Corporations
3-31
FHF
Multinational StrategyA plan used by international companies that involves customizing products, promotion and distribution according to cultural technological, regional and national differences
Global Strategy (Globalization)A strategy that involves standardizing products (promotion and distribution) for the whole world as if it were a single entity.
International Business StrategiesInternational Business Strategies
3-32
FHF
Many political barriers to trade have fallen in recent decades
Navigating international business remains complicated Technology and improved standards of living globally are
creating tremendous new marketing opportunities Governments and business organizations exist to help
businesses looking to go international
Managing the Challenges of Managing the Challenges of Global BusinessGlobal Business
3-33