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Lecture

BUSI 2701 Lecture Notes - Cross Product, Yokohama Rubber Company, Franchising


Department
Business
Course Code
BUSI 2701
Professor
petercowan

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Lecture 9: Entry strats
Basic Entry Modes
- Exporting
oAttractive: avoids costs of ops, helps exp curve and location economies
oUnatract: lower cost mfg locations, high Transpo, tariffs, agents may not act in
foreigners best interest
- Turnkey
oHandling a client and walking them thru
- Licensing
- Franchising
- Establishing a joint venture with local
- Establishing a new wholly owned subsidiary
- Acquiring an established enterprise
Numerous factors of influence
- Tranpo costs
- Trade barriers
- Pol risks
- Econ risks
- Costs
- Firm start
Foreign market entry decisions
- Favourable
oPol stable
oFree market system
oLow inflation
oLow public sector debt
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