Global Aspects of Entrepreneurship

@kylejgenn

Can be strain for small companies but can reap many benefits (ability to offset sales declines in domestic market/ increase sales and profits/ improve quality of products/ lowering manufacture costs/ enhance competitive positions

• requires constant innovation/ using speed as SCA/ maintain quality/ sensitive to foreign customers requirements/ hire multilingual employees/ strive to become insiders rather than exporters

• Strategies for going global- create a website/ value of using trade intermediaries/ joint ventures/ foreign licensing/ international franchising (identify country/ generational leaders/ select candidates/ structure the deal)

• establishing international locations/ importing and outsourcing (is it right for your business/ establish target cost/ market research/ cultural sensitivity/ protect intellectual property/ select manufacturer/ make a model)

  • Trade intermediaries- domestic agencies serve as distributors in foreign countries

  • Export management Comp- merchant intermediaries provide small business with low cost/ efficient/ off-site international marketing department

  • Export trading comp- business buy/ sell prods in many countries/ offer variety of intermediaries/ export services

  • Manufacturers export agents- business act as international sales representatives in limited markets (non-competing)

  • Export Merchants- domestic wholesalers who do business in foreign markets

  • Resident buying office- government / private-owned operations of one country established in another country for the purpose of buying goods made there

  • Domestic Joint ventures- 2+ Us comps in alliance to export goods and services abroad

  • Foreign joint ventures- alliance between US company and company in the target nation

  • Countertrade- company selling goods in foreign country agree to promote investment/ trade there

  • Bartering- exchange of goods/ services for other goods/ services

  • Expat Entrepreneurs- keep citizenship in home country/ live and run business in foreign soil

• Exporting- realize that everyone can export/ analyze product & commitment/ research market & pick target/ develop distribution strategy/ find your customer/ find financing/ ship your goods/ collect your money

  • Letter of credit- agreement between exporters bank and foreign buyers bank/ guarantees payment to exporter for specific shipment of goods

  • Bank draft- a doc the seller draws on the buyer/ requires the buyer to pay the face amount (on site)

Barriers to international trade (Domestic/ international Barriers)

• Domestic- attitude/ information/ financing

• International

  • Tariff- tax/ duty that a gov. imposes on goods/ services imported into that country

  • Quotas- limit on the amount of a product imported into a country

  • Embargo- total ban on imports of certain products into a country

  • Dumping- selling large quantities at prices below cost in foreign countries/ grab market share quickly

  • Barriers: Political/ Business/ Cultural

International Free Trade Agreements (World trade org/ North America/ Dominican Republic- Central America)

• Free trade area- association of countries agreed to eliminate trade barriers among partnering nations