entry mode
SELECCIONAR Y ADMINISTRAR MODOS DE INGRESO
ADMINISTRACIÓN INTERNACIONAL
Entry Modes • Ins%tu%onal arrangement by which a firm gets its products, technologies, human skill, or other resources into a market. • Even big MNE’s don’t use a single entry mode. These companies adapt their strategies to use different entry modes. ADMINISTRACIÓN INTERNACIONAL
Expor%ng, Impor%ng & Countertrade
Contractual Entry
Investment Entry
ADMINISTRACIÓN INTERNACIONAL
" Expor%ng:
-
-
Direct Expor%ng Indirect Expor%ng
" Countertrade:
Expor%ng, Impor%ng & Countertrade
Prac%ce of selling goods or services that
are paid for, in whole or in part, with
other goods or services.
ADMINISTRACIÓN INTERNACIONAL
Condi9ons favoring this mode
Advantages
Disadvantages
• Low sales poten%al; liKle
• Minimizes risk and
• Costs are increased
adapta%on required
investment
due to trade barriers
• Distribu%on channels close to
• High entry speed
and tariffs
factories
• Increases economies of
• Transporta%on costs
• High produc%on cost at des%na%on scales and use of exis%ng • Limited access to local • Open imports policy • High poli%cal risk
infrastructure
informa%on
ADMINISTRACIÓN INTERNACIONAL
Entry Modes • Ins%tu%onal arrangement by which a firm gets its products, technologies, human skill, or other resources into a market. • Even big MNE’s don’t use a single entry mode. These companies adapt their strategies to use different entry modes. ADMINISTRACIÓN INTERNACIONAL
Expor%ng, Impor%ng & Countertrade
Contractual Entry
Investment Entry
ADMINISTRACIÓN INTERNACIONAL
" Expor%ng:
-
-
Direct Expor%ng Indirect Expor%ng
" Countertrade:
Expor%ng, Impor%ng & Countertrade
Prac%ce of selling goods or services that
are paid for, in whole or in part, with
other goods or services.
ADMINISTRACIÓN INTERNACIONAL
Condi9ons favoring this mode
Advantages
Disadvantages
• Low sales poten%al; liKle
• Minimizes risk and
• Costs are increased
adapta%on required
investment
due to trade barriers
• Distribu%on channels close to
• High entry speed
and tariffs
factories
• Increases economies of
• Transporta%on costs
• High produc%on cost at des%na%on scales and use of exis%ng • Limited access to local • Open imports policy • High poli%cal risk
infrastructure
informa%on