...GLOBAL STRATEGYAND MULTINATIONALS' ENTRY MODE CHOICE W. Chan Kim* INSEAD Peter Hwang** Baruch College Abstract. This paper makes a case directed towards establishing the importance of global strategic considerations in choosing multinationals'entry mode. Specifically,it is our contention that beyond the environmental and transaction-specificfactors well established in the literature to affect the entry mode decision, we should also consider the strategicrelationshipa multinational envisages between its operations across borders in reaching this decision. After incorporating various global strategic variables into an eclecticframeworkof the factorsinfluencing entrymode the choice, this paper tests both the validityof the overall framework and the importance of each entry mode determinant in differentiating among entry modes. This is done based on ninety-six multinational managers' responses to a survey questionnaire concerning their entry mode decision experiences. The results suggest that an express incorporationof global strategicvariables into an analysis of the entry mode decision is warranted. This paper is concerned with the critical decision of multinationals' foreign entry mode choice. While existing studies have already identified a diversity of variables that influence this decision, in our view these variables can or essentiallybe collapsedinto one of two categories:environmental ftansactionspecific factors. Common to existing studies identifying these factors is their...
Words: 3800 - Pages: 16
...International Trade Speech Jeffrey D. Randolph, Paul Etuk-Udoh, John Benson, Nathan Delguidice ECO 372 May 20, 2015 Elena Zee International Trade Speech Ladies and gentlemen of the press, welcome to the House of Representatives. Today I will discuss some of the more interesting aspects of the United States economy. Economics, of course, is a combination of theories, principles, and models that deal with the distribution of scarce resources, as it relates to human wants and needs (Dictionary, 2015). This is more commonly referred to as Macroeconomics. I will focus on some key areas involving international trade and foreign exchange rates and how all of this can affect the US economy as a whole. Imports are goods or services brought into the Unites States from another country. Exports are goods and services sold to other countries from the United States. When the U.S. runs a surplus on imported items it means that the United States are bringing in more goods then they are able to sell to other countries. When this happens the U.S. runs a trade deficit. This can be good for consumers because when there is a surplus of products then the price of those products will begin to drop in an attempt to sell the goods faster. This is the case when the quantity of items is not being sold fast enough, the longer a product is held the more money it costs, by lowering price the products will sell which will lower storage cost as well as free up space for new items. Many...
Words: 1340 - Pages: 6
...CHRIST UNIVERSITY Mid SEMESTER EXAMINATION JAN 2014 ( II Sem UG and VIII BHM) : Time: 9:30 to 11:30am Day & Date | 16/01/2014Thursday | 17/01/2014Friday | 18/01/2014Saturday | 20/01/2014Monday | 21/01/2014Tuesday | 22/01/2014Wednesday | II Sem -B.A Programmes HEPEPS | English | Languages/Ad. English | | Political Science | Principles of Macro Economics | Contemporary IndiaSociology | PSEngPSEcoJPEng | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | Principles of Macro Economics British Literature | Foundations of SociologyJournalism | CEP | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | British Literature | Software applicationFor print media & the web | TCE(Theatre Studies) | | | | Introduction toMusic & Dance –II | | | PEP | English | Languages/Add.English | | Basic PsychologicalProcess –II | British Literature | Dynamics of DanceMusic & Theatre | II Sem -B.Sc Programmes CME | English-- | 9:30 to 11:30 amLang/Ad .English | | Computer Science Data Structures & operating system | Electronics | Differential Calculus | | | 2:30 to 4:30 pmIntegral Calculus | | | | | EMSCMS | English | 9:30 to 11:30 amLang/Ad .English | Statistics ( 9:30 to 11:30 am)(Examination will be held in separate room for Stats; check the notice board) | Computer ScienceOperating...
Words: 2645 - Pages: 11
...Environments and Operations John D. Daniels University of Miami Lee H. Radebaugh Brigham Young University Daniel P. Sullivan University of Delaware Pearson Education International Contents Preface 29 About the Authors • PART ONE 39 BACKGROUND FOR INTERNATIONAL BUSINESS 44 1 Globalization and International Business 45 49 44 CASE: The Global Playground Introduction 48 W h a t Is International Business7. The Forces Driving Globalization 50 Factors in Increased Globalization 51 What's Wrong with Globalization? 56 Threats to National Sovereignty 56 Economic Growth and Environmental Stress 57 Growing Income Inequality 57 s | Point ^J3ffi^S^^3 ' Offshoring Good Strategy? 58 Why Companies Engage in InternationaLBusiness Expanding Sales 60 , Acquiring Resources 60 Minimizing Risk 60 60 Modes of Operations in International Business Merchandise Exports and Imports 62 Service Exports and Imports 62 Investments 63 Types of International Organizations 63 Why International Business Differs from Domestic Business 64 Physical and Social Factors 65 The Competitive Environment 67 Looking to the Future: 61 Three Ways of Looking at Globalization 68 C A S E : Carnival Cruise Lines: Exploiting a Sea of Global Opportunity 69 74 Summary Key Terms 75 Endnotes 75 An Atlas 78 Map Index 86 Contents • 2 PART TWO COMPARATIVE ENVIRONMENTAL FRAMEWORKS 90 91 90 The Cultural Environments Facing Business 94 95 C A S E : The Java...
Words: 3378 - Pages: 14
...TABLE OF CONTENTS Introduction and Overview…………………………………………………………….Page 1 The Country…………………………………………………………………………….Page 2 Government and Politics………………………………………………………………..Page 3 Economic Structure……………………………………………………………………..Page 4-8 National Culture………………………………………………………………………...Page 9-11 Management…………………………………………………………………………….Page 12-14 Comparison U.S. and Canada………………………………………….……………….Page 15 Interview……………………………………………………………………………….Page 16 Conclusion………………………………………………………………………………Page 17 References………………………………………………………………………………Page 18-22 1 INTRODUCTION AND OVERVIEW Introduction The purpose of this paper is for us, as a team, to learn more about the culture in Canada relating to a business atmosphere as well as a casual atmosphere. It is important to be knowledgeable of cultures in other countries, due to possible international business opportunities that may arise in the future. Overview In this paper, we discuss a little bit about the history and demographics of the country as a whole. We also talk about the government, economy, and culture of Canada on a more detailed level. Later, in the paper management in Canada as well as a comparison of the U.S. and Canada is covered. 2 CANADA- THE COUNTRY History The first group to come to Canada was the Aboriginal people who were later joined by the French and British to form the culture of Canada (Wikipedia, 2010). Canada has also been influenced by the United States relating to its...
Words: 4857 - Pages: 20
...Table of Content 1 What is organic growth? 1 2 Why organic growth? 1 Preparing for organic growth 2 3 How organic grow 3 The models included 3 4 Growing pains in organic. 6 5 Transition in organic growth 7 6 Conclusion 8 7 References 9 What is organic growth? In growing process for entrepreneurial business, internal (organic) growth is one of the most important steps for a firm to sustain the growing process. Through the definition and research from Barringer and Ireland (2010), most of the entrepreneurial business use organic grow as their first main growth strategy, when it doesn’t rely on outside intervention. The rate of entrepreneur failure was also mentioned by Scott Shane (2008) that only 50% of the entrepreneur business still alive after the first 5 years. Thus focusing into internal growth would be a strong strategy not only for standing in the competitive market but also is a sustain way of growing for a company in the first step. Why organic growth? In entrepreneur business, the theories from Schumpeter (1962) about the competitive process of capitalism which was not created by timid elements of reducing price but the innovation and creative from inside the firm itself generated overall economic growth and development, have been attracting the attention from even modern economists. Also based on Schumpeter (1962) as the changes are the key factors for growing. A newly start-ups company are more dynamic and making changes...
Words: 5643 - Pages: 23
...Andrea Y. Heard Western Governors University JET2 – Task 5 - Financial Analysis Chief Financial Officer Presentation Mentor, Business: Carl Israel, MBA October 10, 2013 A1. Key Points Custom Snowboards, Inc. would like to present financial statistics in an effort to secure funding for an expansion project into Europe. There has been considerable growth in the percentage of sales and a substantial increase in revenue. The company is requesting capital debt in the amount of $1 million to fund the extension project. Future sales are expected to continue to surge, allowing for an inflow of revenue to meet the needs of both Snowboard and the lender. A horizontal analysis will reveal data of the company’s profitability, liquidity and solvency over a three year period that will assist with the approval process. The results of the analysis will reveal key points that will confirm the company’s ability to successfully expand into Europe while continuing to provide maximum shareholder returns. Profitability A measurement of Snowboard’s profitability will divulge a picture of the financial health. A breakdown of the income statement will show income and expenses during each business year for a three year period. “The results of the profitability analysis will display how profit was earned in relation to sales, total assets and net worth.” (Hunt, 2013). · Net Sales “Custom Snowboards finance team is well...
Words: 13267 - Pages: 54
...Jet Task 5 Western Governors University JET2 – Task 5 - Financial Analysis Chief Financial Officer Presentation A1. Key Points Custom Snowboards, Inc. would like to present financial statistics in an effort to secure funding for an expansion project into Europe. There has been considerable growth in the percentage of sales and a substantial increase in revenue. The company is requesting capital debt in the amount of $1 million to fund the extension project. Future sales are expected to continue to surge, allowing for an inflow of revenue to meet the needs of both Snowboard and the lender. A horizontal analysis will reveal data of the company’s profitability, liquidity and solvency over a three year period that will assist with the approval process. The results of the analysis will reveal key points that will confirm the company’s ability to successfully expand into Europe while continuing to provide maximum shareholder returns. Profitability A measurement of Snowboard’s profitability will divulge a picture of the financial health. A breakdown of the income statement will show income and expenses during each business year for a three year period. “The results of the profitability analysis will display how profit was earned in relation to sales, total assets and net worth.” (Hunt, 2013). · Net Sales “Custom Snowboards finance team is well aware that sales are an important factor in determining profitability.” (Hunt, 2013). During period from year 12 to year 13, net sales increased...
Words: 13260 - Pages: 54
...Module Code : B9MG116 Module/Subject Title : International Management Word count : 4,406 1|Page Saurabh Mallick (10269890) Index Abstract……………………………………………………………………………………......3 Research Methodology..………………………………………………………………………3 Limitations ……………………………………………………………………………………3 About MANGO………………………………………………………………………………..3 Introduction (Peru an Emerging Economy)…………………………………………………4 Ease of Doing Business……………………………………………………………………….5 Market Attractiveness of Per (PESTEL Analysis)…………………………………………...6 o o o o o o Political analysis………………………………………………………………………………7 Economical Analysis…………………………………………………………………………..9 Socio-Cultural Analysis……………………………………………………………...............13 Technology Analysis………………………………………………………………................17 Environment Analysis………………………………………………………………………..18 Legal Analysis………………………………………………………………………………..19 Entry and Evaluation of MANGO in the Peru Market…………………………………….21 SWOT Analysis………………………………………………………………………………24 Ethics & Corporate Social Responsibilities…………………………………………………28 PESTEL Analysis on Peru Fashion Industry (MANGO)………………………………….28 CSR for Retail fashion Industries…………………………………………………………...29 Conclusion…………………………………………………………………………………...33 Bibliography…………………………………………………………………………………34 2|Page Saurabh Mallick (10269890) Abstract This report insights the PESTEL analysis done on the country Peru, in context to fashion retail brand MANGO. Research Methodology Every one of the sources utilized...
Words: 5927 - Pages: 24
...African Journal of Business Management Vol.6 (22), pp. 6456-6464, 6 June, 2012 Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.2673 ISSN 1993-8233 ©2012 Academic Journals Review Key issues in cross-cultural business communication: Anthropological approaches to international business Tian Guang* and Dan Trotter Shantou University, Shantou City, Guangdong Province, Southern China. Accepted 8 March, 2012 Cultural factors have long been known to influence the communication and success potential of competition. Cultural awareness shapes how business firms behave in cross-culturally reflected international markets. It is broadly recognized that cultural factors act as invisible barriers in international business communications. Understanding cultural differences is one of the most significant skills for firms to develop in order to have a competitive advantage in international business. This paper probes some key elements of cross-cultural issues in international business communication and provides a framework for creating competitive advantage for firms engaged in international business. Culture affects many aspects of international business communication. It impacts free trade policies, localization and standardization strategy decisions, advertising, brand effectiveness, business relationships, international business management, international marketing, international negotiation, and consumer behavior. Seven themes are suggested as guidelines...
Words: 6912 - Pages: 28
...Responses to Review Questions Answer One What are the factors that influence a company's decision to go abroad? Please explain how these are related to each other. In the discussion on the internationalisation process of a firm, the product life cycle model plays a major role. Please explain and discuss the usefulness this model. (A) Generally, the first decision to go abroad is a specific one. It is a decision to look at the possibility of a specific investment in a specific country, not a general decision to look around the globe for investment opportunities. At this stage the organisation has no experience with the complexities of foreign investment, although it often has had some export experience. There are no standard operating guidelines, which can be given to deal with these complexities. What is needed mostly is a strong push and/or commitment to go abroad. A company benefits from these earlier experiences in the subsequent investment decisions. The organisational factors include: • role of the management • motives of the organisation • success at home Other than these internal forces, a number of factors in the environment, outside the organisation, may also force a company to go abroad. These drivers of internationalisation may include: • unsolicited proposal that cannot be ignored. These may include proposals from a foreign government, distributor or customer • competitive drive or bandwagon effect following other competitors or a general belief...
Words: 8082 - Pages: 33
...® Academy oi Management Review 1994, Vol. J9. No. 1. 119-143. INTERNATIONAL-BUSINESS POLITICAL BEHAVIOR: NEW THEORETICAL DIRECTIONS JEAN J. BODDEWYN Baruch College THOMAS L. BREWER Georgetown University Alternative assumptions are advanced regarding the political nature of international business and the role of government as a factor of production, which firms must manage in their international valueadded chains. Based on a model oi business political behavior, various propositions are developed regarding the interactions among firm, industry, and nonmarket factors as well as the impact they have on various forms and intensities of political behavior, as affected by strategic objectives. Finally, the sfrategic-theorizing implications of such behavior are discussed in the context of the recent emphasis on resource-based models of strategy management. Research in international business (IB) is much more infused with a consideration of political factors than its domestic counterpart. Authors of IB studies have constantly mentioned and even emphasized government as a variable, rather than a constant or given, because international firms (exporters, importers, licensors, foreign direct investors, etc.) operate under a great variety of evolving political regimes that have an impact on these firms' entry, operation, and exit. When IB topics were first researched in a policy-oriented manner, Fayerweather (1969) stressed "the accommodation of interests and the ...
Words: 10811 - Pages: 44
...Innovation and internationalization through exports Author(s): Bruno Cassiman and Elena Golovko Source: Journal of International Business Studies, Vol. 42, No. 1 (January 2011), pp. 56-75 Published by: Palgrave Macmillan Journals Stable URL: http://www.jstor.org/stable/25790105 Accessed: 03-11-2015 10:14 UTC Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/ info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Palgrave Macmillan Journals is collaborating with JSTOR to digitize, preserve and extend access to Journal of International Business Studies. http://www.jstor.org This content downloaded from 163.22.18.33 on Tue, 03 Nov 2015 10:14:08 UTC All use subject to JSTOR Terms and Conditions of International Business Studies (2011) 42, 56-75 Sj? Journal HT* ? 2011 Academyof International reserved Business All rights 0047-2506 www.jibs.net Innovation through and exports Bruno Cassiman1,2,3 Elena Golovko4 and UESE Business School, Barcelona, Spain; Economics, Strategy 2Department of Managerial and Innovation, K.U. Leuven, Leuven, Belgium; 3CEPR...
Words: 12313 - Pages: 50
...GLOBALIZATION OF MANAGEMENT EDUCATION: Changing International Structures, Adaptive Strategies, and the Impact on Institutions This page intentionally left blank GLOBALIZATION OF MANAGEMENT EDUCATION: Changing International Structures, Adaptive Strategies, and the Impact on Institutions Report of the AACSB International Globalization of Management Education Task Force AACSB International – The Association to Advance Collegiate Schools of Business 777 South Harbour Island Boulevard Suite 750 Tampa, Florida 33602-5730 USA Tel: + 1-813-769-6500 Fax: + 1-813-769-6559 www.aacsb.edu United Kingdom North America Japan India Malaysia China Emerald Group Publishing Limited Howard House, Wagon Lane, Bingley BD16 1WA, UK First edition 2011 Copyright r 2011 AACSB International. Reprints and permission service Contact: booksandseries@emeraldinsight.com No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the copyright holder or a license permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. No responsibility is accepted for the accuracy of information contained in the text, illustrations or advertisements. The opinions expressed in these chapters are not necessarily those of the Editor or the publisher. British Library Cataloguing in Publication...
Words: 133204 - Pages: 533
