Trends In Foreign Market Entry Mode Choices â€Myassignmenthelp.Com

Question: Discuss About The Trends In Foreign Market Entry Mode Choices? Answer: Introducation Direct Exporting: The Company will be selling products directly into the new market by using distributors and agents as representatives. The distributors and agents will be the face of our company, and they will work closely with the head office to represent the company interests in the global markets(Abdi Aulakh, 2012, p. 480). International Joint Ventures: Entering into a joint venture with a foreign company dealing with the clothing products will help our company to penetrate the new markets by facing a few obstacles. Ideally, the international joint venture offers expertise about the new market and provide necessary business networks(Calegario, Houston, Bruhn, 2015, p. 49). Trade Intermediaries: Our Company will use trade intermediaries to save on the resources that may be required to enter the new markets directly. Trader intermediaries usually buy products at the lower rate and resell them in the global markets(Brouthers Hennart, 2012, p. 398). Direct Exporting Directing exporting through distributors and agents in the overseas markets will offer our business low-risk strategy of entering the international arena. It is cheap and easier to export directly in the new global markets instead of transferring our production to the host country target markets. Our company is still small and therefore, relying on direct exporting will save it from international markets entry resource commitment, excessive costs and risks associated with the new market entry strategies. Our product, Trendy T-Shirt have not yet entered the international arena. Therefore, there is less competition for our product in the new markets, and it will be easy to get it sold through direct exporting. Direct exporting gives our company an opportunity to engage the natives in the host country as company distributors and agents. International Joint Ventures Establishing international joint ventures will enable our company to sell products in the new markets without necessarily meeting the trade regulations in the host country. The company in the foreign market will cater for the business compliance requirements. International joint ventures will work best for the countries that tax foreign business higher than the domestic ones. This strategy can be appropriate when entering the Chinese market as well as other countries in the Asian continent. This strategy will the most suitable for the countries that require all business ventures to have partial ownership of the domestic business partners(Matarazzo Resciniti, 2014, p. 60). Joint venture strategy will help our company to penetrate new markets with ease because all the market operations and activities will be left to be handled by the foreign company. Trade Intermediaries Our company is still young and new in the international market. Therefore, it will appropriate to rely on entrepreneurial intermediaries to provide company products in the new markets. Trade intermediaries have established relationships and contacts and hence will save our company more resources that could have been employed on other strategies. The low price that our company will sell products to international intermediaries will be cheaper than the cost of entering the global markets directly. Our Company lacks international market expertise. However, selling products to the intermediaries at the reduced price will facilitate an entry strategy in the new markets. Trade intermediaries save our company from transportation and marketing costs that are transferred to the global entrepreneur through reduced product prices. References Abdi, M., Aulakh, P. (2012). Do country-level institutional frameworks and interfirm governance arrangements substitute or complement in international business relationships? Journal of International Business Studies, 43(5), 477497. Brouthers, K., Hennart, J. (2012). Boundaries of the firm: Insights from international entry mode research. Journal of Management, 33(3), 395425. Calegario, C. L., Houston, J. E., Bruhn, N. P. (2015). Foreign Market Entry Strategies in the United States/European Union Agribusiness Trade Context. International Journal of Food and Agricultural Economics, 3(3), 47-61. Matarazzo, M., Resciniti, R. (2014). New Trends in Foreign Market Entry Mode Choices: The Case of Italian MidSized Companies. Journal of International Business and Economics, 2(2), 57-70.