Section outline

  • Unit Objectives
    1. Oversee the main foreign market entry strategies/ operation modes
    2. Comprehend exporting and its forms as primary the foreign market entry strategy for many SMEs.
    3. Know the export documentation, the central Incoterms and payment methods
    4. Realize that countertrade is a popular approach for emerging markets and developing economies
    5. Understand how importing, outsourcing and offshoring are important for MNCs are essential in global competition.
      • Overview Foreign Entry Modes (9:27) Page
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        Foreign Operations Modes, also refered to as market entry strategies, consist of exporting, sourcing, foreign direct investment, licensing, franchising, and non-equity alliances. This unit explains one type of foreign market entry strategy: Exporting, and in so doing, also discusses the counterpart of exporting: Importing (also called global sourcing), as well as outsouring and countertrade.

      • Exporting (7:02) Page
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      • Managing Exports (10:28) Page
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      • Counterpurchase (5:35) Page
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      • Outsourcing (13:38) Page
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      • Outsourcing and Configuration (8:27) Page
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        ♦ ♦ ♦ Did You Understand? ♦ ♦ ♦

      • 8. Self Assessment Quiz
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      • In Class: Export Case Study Page
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      • Essay/Case question Page
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      • In-class discussion case Page
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        ♦ ♦ ♦ Exercise Materials ♦ ♦ ♦

      • Example of an Export Intermediary to the German market URL
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        Wilms is an export agent for foreign food manufacturers looking to do business in Germany.
      • Illustration of Offset/Counterpurchase agreements by Rheinmetall URL
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      • Incoterms - internationally recognized standards; used worldwide in international and domestic contracts for the sale of goods URL
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        ♦ ♦ ♦ Recommended Readings/Resources (optional) ♦ ♦ ♦

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        Further Reading: Morschett et al. (2015) Chapter 14, p. 323-331, Chapter 15, p. 343-353, Chapter 16, p. 365-376, Cavusgil et al. (2016)  Chapter 13, p. 374-404.