商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international tradechap.24 forms of international business.ppt

Forms of International Business Question Through which way, a domestic company can enter into foreign markets ? The most common forms or ways of doing international business would include: (1) importing exporting, (2) licensing franchising, (3) industrial cooperation and support agreements, (4) joint ventures, or (5) wholly owned subsidiaries. Main Contents 1. Entry through Imports Exports 2. Licensing and Franchising 3. Industrial Cooperation Support Agreement 4. The Turnkey Project 5. Joint Ventures 6. Wholly Owned Subsidiaries 7. General Trading Companies 1. Entry through Imports Exports simplest and least risky way Deal through an export management company (EMC) Deal through a foreign import house a reliable importer Deal through a manufacturer’s representative abroad more individual effort in pushing his or her own product 1. Entry through Imports Exports Set up a marketing subsidiary abroad (either wholly owned or a joint venture) ① the market potential has been established through export or careful market research. ② the firm with considerable multinational experience. The import structure includes: import merchants, import representatives, and customer owned import establishments The Import Merchant The import merchant: the import trading company that specializes in the products it imports and their particular distribution patterns. Import Representatives Import representatives serve as international brokers, normally performing exporting as well. Import Representatives They are of two types: (1) commission houses that strictly serve as agents for local consumers buying abroad and making all delivery arrangements but assuming no financial responsibility; (2) resident representatives of foreign exporters perform the buying and distributing functions for the foreign exporter. Consumer-owned Import Establishments Consumer-owned import establishments provide more direct control over the importing process and ov