International Bus 540: International Business Entry Modes

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International Business Entry Modes Robbie Watson University of Lafayette International Business IBUS 540 Miguel A. Orta June 20, 2018 Abstract The rise in globalization over the last few decades has helped facilitate and encourage corporations to expand into international markets. This paper will review the five common international expansion entry modes, and the pros and cons of each method. Finally, my employer is in the technology industry and I will breakdown and recommend which entry mode would work best for international expansion. International Business Entry Modes Globalization has broken down many of the trade barriers and has allowed companies to expand internationally over last few decades. Emerging markets such as Brazil, …show more content…

for use in a foreign country for a fee. An example of licensing is with the NFL, by allowing its brand to be licensed to memorabilia, television broadcasts, sporting goods, toys and video games. Franchising is where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business processes to produce and market and market goods and services. Common examples of franchising are with fast food chains such as McDonalds, and Burger King. Pros Franchising provides fast entry into a country with low cost and low risk. The setting up of the operational facilities is the responsibility of the franchisee. Since the licensee and franchisee are in the foreign country, it is easier for it to respond to customer demands. Cons It is difficult to control the operation of the licensee or franchise. In recent news Burger King in Russia was running an advertisement that was found offensive to some cultures (Scott, 2018). Negative publicity is hard to control and manage with franchises. Finally, the firm may end up creating a competitor by agreeing to licensing and franchising deals in new foreign …show more content…

Regardless of which entry method is chosen, the inherit risk of international expansion must always be considered into long term corporate goal and strategies. References Ciesielski, J. T. (2016). How Autonomy Fooled Hewlett-Packard. Retrieved from http://fortune.com/2016/12/14/hewlett-packard-autonomy/ Knight, G. (2015, February 02). Born Global Firms: Evolution of a Contemporary Phenomenon. Entrepreneurship in International Marketing, 3-19. https://doi.org/10.1108/S1474-797920140000025001 Orta, M. (2018, June). Module 2 Overview on VoiceThread Lecture Notes [Video file]. Retrieved from https://moodle.louisiana.edu/pluginfile.php/1636549/mod_resource/content/1/061318%20MODULE%203-DEVELOPING%20A%20BUSINESS%20PLAN.pdf Scott, C. (2018). Burger King Russia apologies for World Cup ’impregnation’ ad. Retrieved from https://www.cnn.com/2018/06/20/football/burger-king-russia-apologize-for-world-cup-impregnation-advert-spt-intl/index.html Zekiri, J. (2016). Motivating Factors and the Modes of Entry in Other Markets. Ecoforum, 5. Retrieved from

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