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Assignment Subject Code & Name MB0053 - International Business Management
Assignment Subject Code & Name MB0053 - International Business Management
Q4 There are several methods used in globalised era for international market entry, such
as exporting, franchising, licensing, joint venture and wholly owned subsidiary.
Compare any two mode of Foreign market entry.
ANS Comparison of foreign market entry modes
Sl. no Mode Factors favoring Advantages Disadvantages
the entry mode in
target market
1. Exporting 1.Opportunities 1. Minimizes 1. Trade
for limited the potential barriers and
sales in the risk in trade as tariffs and
target country. firms need not other cost
2. Chances for invest in target make products
little product, market. and services
new product 2. Ease in uncompetitive
and adaptation. market entry 2. In case of far
3. Distribution 3. Better away market,
channels are utilization of transport,
usually close to production packaging and
manufacturing facility and logistics costs
sites. resources. put additional
4. Economies burden.
of scale cannot 3. Problems in
be attained in accessing the
production and local market
logistics, hence information.
high
production cost
in domestic
market Liberal
import policies
of target
country.
Q5 In today’s trade, the increasing number of strategic alliances stands as one among the
fast growing developments. Explain.
What are the advantages and disadvantages of formulating strategy?
ANS Strategic alliances
In today’s trade, the increasing number of strategic alliances stands as one among the fast
growing developments. According to Booz-Allen and Hamilton,strategic alliances are far-
reaching through nearly every industry and are becoming an important driver of higher
growth. Alliances vary in scope from an informal business association based on a simple
contract to a joint project agreement. To manage the alliance for legal and tax purposes
either a corporation or partnership is set up.
Strategic alliances involve organisations working together towards a common goal
for small businesses, without losing their individuality. Forming strategic alliances helps
one reap considerable profits as well as obtain rewards of team effort. Statistical studies
claim, organisations that take part in alliances account for 18 percent of their profits that
come from their alliances.
THE END