International-Business-Dr-R-Chandran-E-book

15
International Business- Dr. R. Chandran
2.Methods of Entry in International Business
For every human being or business unit, the origin is one,
but, the laurels are built in multiples and that too, in
various destinations. The vision, business models, right
decisions and proper implementations have created
business enterprises in the and in the contemporary world.
Learning value
International business provides a wide range of advantages and
opportunities. Companies in developing and less developed countries
operate through physical exports, whereas those in advance countries
operate through joint ventures, collaborations, franchises and other
methods. Firms would prefer to go international only if the benefits
surpass anticipated risks, and they carry out an in-depth analysis before
entering international business. Generally, they give serious
consideration on the following aspects:
a. Current and potential size of the market.
b. Level of completion for a specific product or service
c. Economic growth of the country and reform process
d. Purchasing power of the people
e. Political and legal environments and their impact in business
f. Infrastructures like banking, insurance, port facilities etc
g. Socio-cultural background of the country
h. Availability of technical and non-technical work force
i. Foreign exchange reserve and repatriation facilities
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