Module 5: "Internationalization of companies" of the Master in International Business (Foreign trade, International Marketing and Internationalization)|
A firm that wishes to place itself in the foreign market will find in this module
of the Master in International Business all of the necessary information for a
secure investment in another market
Any executive wishing to do international business must be a
strategist, able to design exhaustive strategies adapted to each market.
In this unit we will analyze the main concepts of internationalization
strategies (Five forces model, SWOT Analysis, Value Chain Analysis ...) and
success stories of different companies.
e-business is a new way of doing business that can become a Competitive advantage for a company in the global marketplace if can design an
e-business strategy in line with the strategy of internationalization. In many
cases this lack of strategy can convert this advantage into a threat or a
weakness for the company.
Intercultural Negotiation is one of the most important and difficult
aspects in International trade. The exporter negotiates with individuals from
countries with very different cultures and habits. If the exporter does not
adopt an open and respectful attitude towards these cultures he will hardly
achieve success in his business. He should try to learn the idiosyncrasies of
each market. The main objective is to gain an understanding of the nature
of different cultures and how to adapt our marketing strategies to different countries.
International expansion can end up with the creation of one or various
sales delegations wherefrom, by area, the commissioned representatives are
controlled. The next step for successful commercial delegations is not
necessarily to finish manufacturing the product on the spot. Various legal ways
exist for their establishment, all of which are destined to assure a solid
presence with a rigorous tax control and protection of the parent company, The company should to develop a rigorous analysis of the risk factors
that influence those companies with multinational operations in order to protect
them against possible compulsory purchase or by government take over.
Foreign direct investment reflects the objective of obtaining a
lasting interest by a resident entity in one economy ("direct investor") in an
entity resident in an economy other than that of the investor ("direct investment enterprise").
The lasting interest implies the existence of a long-term relationship
between the direct investor and the enterprise and a important degree of influence on the management of the enterprise.
Direct investment involves both the initial transaction between the two entities
and all subsequent capital transactions between them and among affiliated
enterprises, both incorporated and unincorporated.