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

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16 International Business- Dr. R. Chandran DIFFERENT MODES OF ENTRY IN INTERNATIONAL BUSINESS 1. EXPORTS Export deals with physical movement of goods and services from one place to another through a customs port followings the rules of both the country of origin and country of destination. Depending upon the involvement of the exporter, exports can be classified as direct or indirect. Direct exporters export their goods and services in their own name and the buyer directly remits proceeds, in a proper manner and through a proper channel. The proper channel means that the remittance is made through the banking channel in the currency, which is quoted in the invoice, and the proper channel means that the goods are legally exported through a customs port. Indirect exporters supply goods to direct exporters. Lack of expertise, international contacts and manpower cause them to depend upon direct exporters. Farmers rarely export grains on their own. Artisans cannot develop international contacts to clinch business deals. Therefore, they become indirect exporters. Their products are to other countries but not in their names. Exporters can be classified in several ways: 1. Depending upon the size of business, they are classified as small and large exporters. Current national trade policy provides incentives and facilities to promote both small & large exporters in different ways that are status holders due to their performance in earning foreign exchange. 2. Depending upon the product lines exported, they are classified as single product and multiple product line 3. Depending upon their legal status, they are classified as proprietary, partnership, private limited and public limited companies 4. Depending upon the destination of their exports, they are classified as single destinations or multi destination exporters. Nowadays, the majority of the companies adopt the philosophy of multi product, multi location, multi strategic, and multi dimensional operations. Only for Private Circulation
17 International Business- Dr. R. Chandran 5. Depending upon the frequency of their exports, they are classified as occasional exporters and dynamic exporters. DIRECT EXPORTERS EXPORT INVOLVEMENT INDIRECT EXPORTERS Own name and beneficiary Not on there own name but supply to direct exporters SIZE PRODUCT LINE SMALL LARGE SINGLE PRODUCT MULTI PRODUCT CLASSIFICATIONS LEGAL STATUS PARTNER SHIP PVT LTD PROPRIETARY DESTINATION FREQUENCY PUBLIC LTD SINGLE MULTIPLE OCASSIONAL BRISK Only for Private Circulation
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Page 3 and 4: COMPANY COUNTRY OF ORIGIN REFORM PR
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Page 13 and 14: 10. Legal aspects 11. Investment an
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Page 19 and 20: LICENSOR LICENSEE PROVIDE THE RIGHT
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Page 25 and 26: 10. MERGERS AND ACQISITIONS 25 Inte
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Page 39 and 40: SOCIAL ENVIRONMENT 39 International
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Bahrain international Business Cent
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(ACUs). These are operational units
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6. Essentials of Trade Finance 81 I
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RATES TT Selling Rate Exchange Marg
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) Constant motivation of subsidiari
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2. Organizations with an Internatio
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3.3 Organization according to Geogr
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Joint Venture with an Indian Partne
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Stage:6 “Global mindset, customer
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The Decision Making Process 155 Int
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Environmental Issues 159 Internatio
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AGREEMENTS OBJECTIVE OF AGREEMENT b
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AGREEMENTS OBJECTIVE OF AGREEMENT 1
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AGREEMENTS OBJECTIVE OF AGREEMENT f
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Tariff Barriers 191 International B
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D) On the basis of trade relations
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Types of non-tariff barriers 195 In
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World Bank 199 International Busine
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• Macroeconomic & Economic Growth
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• Local Currency Financing • Mu
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INTERNATIONAL MONETARY FUND 205 Int
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ASIAN DEVELOPMENT BANK 207 Internat
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Mode of transport Type of delivery
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How many intermediaries are require
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20’ dry high cube 20’ refrigera
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Factor Conditions PURCHASING POWER
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R= 44 ×100 = Rs. 40 110 243 Intern
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3. Freedom loving and self-reliant.
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Japan 257 International Business- D
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Three sources of employees for inte
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Strategy of the organization Need f
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