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Participants in IB

  1. Organizational Participants that make international business happen
  2. What we will learn  We will overview the participants in International Business  Arranging those participants in value chain  Focal firms in IB  International entry strategies of focal firms  Distribution channel intermediaries in IB  Facilitators in IB  Governments in IB
  3. Recalling the Participants in IB from Chapter 1 MNE: A large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries SME: A Company with 500 or fewer employees (as defined in Canada & USA) Born Global Firm: Young entrepreneurial company that initiates international business activity very early in its evolution, moving rapidly into foreign markets Governments & NGOs: Larger entities as compared to above 3 stated participants
  4. Categories of Participants in IB Focal Firm: Initiator of International Business who design, produce offerings for intended consumption by customers Distribution channel Intermediaries: Specialized firms who carry out distribution of services and products for focal firms Facilitators: firms with special expertise in banking, legal, customs, and related services for assistance to focal firms Governments: In this we refer to state owned enterprises
  5. Putting these participants in Intl. Value Chain
  6. Putting these participants in Intl. Value Chain
  7. Gyro chip (Switzerland) Multi-touch display cover (China) Memory (Japan) Hardware (South Korea) CPU (UK) Steel Case (Taiwan) Internet compass software (Japan) Wireless (Germany) Audio (USA)
  8. Dell’s International Value Chain
  9.  They are the most prominent players in international business. they are:  MNEs  SMES  Born Global Firms Focal Firms
  10.  Focal firms use below entry strategies to enter into international market: 1. Licensor 2. Franchisor 3. Turnkey Contractors 4. Joint Ventures 5. Project based, non-equity venture partners Foreign Market Entry strategies
  11.  These intermediaries are providing services, including market research, appointing local agents/commission reps, exhibiting products, arranging local transport and clearing services etc. 1. Foreign distributor 2. Agents 3. Manufacturer representatives 4. Trading companies 5. Export management companies 6. Online intermediaries Intermediaries based in foreign market
  12. 3rd category of participant are facilitators, independent individuals or firms that assist internationalization and foreign operations of focal firms. They include: 1. Banks 2. Trade lawyers 3. Freight forwarders 4. Custom brokers 5. Consultants Governments: 1. Sovereign wealth fund (SWF) Facilitators in International Business

Notas do Editor

  1. DHL, Fedex, UPS
  2. DHL, Fedex, UPS