Entry Modes
-implies huge resources and big compromise and also higher risk
Scale:
Large scale
-Marginal Exports, Growind Demand and Huge Potential come within which phase?
It stated that gold and silver were the base for prosperous commerce
Mercantilism
More sources of new ideas are benefits of:
Transfer know-how
This entry mode allows to dominate the market, benefits of economies of costs and creates high loyalty among customers.
Early entry- a Pioneer
Home Market Sales, Investigation and Markets Selection are all part of...
The Preliminary Phase
It broaden A. Smith's theory and it stated that even with no absolute advantage a country could still benefit from trade.
Comparative Advantage Theory.
Move the value-creating companies that more favorable locations: political, cultural, economic and factors abundancy are benefits of
Economies of location
Easiest and Fastest mode, preffered by the majority of the companies as initial entry mode
Exports
There are two ways of selecting a market for your exports which are:
Active and Passive Mode
It emerged in the 70's and it is based in the economies of scale
The new trade theory
Grow home and send abroad a proven success, no local comparative products, the importance of the key competence and the importance’s of the capacity to transfer it are benefits of:
New market
Delivery of the complete project (including training) common in chemicals, pharmaceutials, oil refinement
Project Key on Hand
Within the passive mode you...
await for orders or comes across them by chance
''The market forces should determine exports and imports (invisible hand)''
Absolute Advantage Theory
The impact of the expierence cutve and the importance of the economies of scale are benefits of:
Economies of cost
An agreement between two or more parties, use of intangible property and payment of royalities
Licenses
-Regular Exports, Experience and Investigation on other growth strategies come in the...
Advanced Phase
The theory recommends to export the output of the abundant factors and to import the output of the scarse factors.
The Theory of Hecksher-Olin