06 Jul EXPORTING, IMPORTING, AND COUNTER-TRADE;
This module brings together some of the foundations that we have reviewed in earlier modules to assess global business opportunities and initiatives as well as to provide insights into modes of entry for these global opportunities. A three-step approach to the assessment of the initiatives can be structured to include the identification of the basic appeal of the initiative, analysis of the national business environment in which the initiative will be started, and the measurement of the potential market for a product or a site assessment. Clearly, our prior examinations of international business issues and environments will serve us well in completing this three-step assessment.
The module is also about introducing the different types of entry modes for actualizing the initiative. Three modes are reasonable to consider: 1. Exporting, importing, and counter-trade; 2. Contractual entry; and 3. Investment entry. The export approach is the least risky as much of the operations will remain in the home country. A contractual entry approach has advantages of potentially making use of local business contacts in the foreign country through licensing, franchising, or management contracts. Finally, investment approach can include joint ventures or various types of strategic alliances or complete ownership.
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