MBS INT BUS S5 Int Market Entry Strategies and Global Expansion

What is one of the simplest market entry strategies?

• Franchising

• Joint ventures

• Exporting

What is a benefit of exporting?

• Full control over quality in foreign markets

• No shipping costs

• Minimal investment required

What is a challenge of exporting?

• Lack of control over tariffs

• Unlimited access to all foreign markets

• Tariffs and shipping costs

How does franchising help companies expand internationally?

• By reducing product variety

• By allowing rapid expansion with reduced risk

• By eliminating fees for partners

What is a potential downside of franchising?

• Loss of brand identity

• Difficulty maintaining control over quality and reputation

• Lack of global demand for franchises

What is an advantage of joint ventures?

• Avoiding local expertise

• Reducing costs by eliminating partners

• Sharing risks, costs, and local knowledge

What is a common risk of joint ventures?

• Complete control over decisions

• Conflicts over control and decision-making

• Low returns on investment

What does a merger or acquisition provide for a business?

• Instant access to local assets, knowledge, and customer bases

• Full ownership of a foreign company

• No financial risks involved

What is one risk associated with mergers?

• Unlimited market access

• Complete avoidance of local competition

• Significant financial and integration risks

What must businesses consider when assessing market potential?

• Global competitors only

• Domestic demand

• Consumer demand, local competition, and regulatory environments