Answer the following Chapter 12 Review Questions. Answers to all questions can b
ID: 344706 • Letter: A
Question
Answer the following Chapter 12 Review Questions. Answers to all questions can be found in text reading. Answers need to be at least one good paragraph in length. A couple of sentences will not be acceptable. See my Grading Philosophy statement in the Start Here Module for more information on how I grade this written work. Question 12.1Describe the steps in conducting a foreign market analysis. Question 12.2 What are some of the basic issues a firm must confront when choosing an entry mode for a new foreign market? Question 12.3 What are the 3 specialized entry modes for international business and how do they work? Question 12.4 What are the 3 basic forms of FDI and what are the advantages and disadvantages of each? (define FDI in your answer). HINT: the answers to all these questions can be found in reading Chapter 12. Example: see pages 336-339 for the answer to 12.2 Now you find the others...
book:
International Business: A Managerial Perspective (8th Edition)
INTERNATIONAL BUSINESS A Managerial Perspective ROCKY W GRFAIN MICHAEL W PUSTAYExplanation / Answer
Answer:
12.1 - Steps in conducting a foreign market analysis : For foreign market analysis following are the three key steps are as below
12.2 Some of the basic issues a firm must confront when choosing an entry mode for a new foreign market are as below
12.3 The 3 specialized entry modes for international business and how do they work?
12.4 The 3 basic forms of FDI and their advantages and disadvantages of each are as below
FDI : Foreign Direct Investments : FDI is the direct investment carried out by a business in the foreign county to set up their business for capturing the market of the foreign country.
The three basic forms of FDI are as below
Horizontal FDI : Advantage of Horizontal FDI is that it can have similar setups at across all abroad locations, thus it uses its strength at global level, but disadvantage is that it cannot explore global market completely and will be limited to its basic strength only.
Vertical FDI: Advantage of vertical FDI is that it can explore vertical FDI to capture global market in better ways as compared to horizontal FDI. Disadvantage is that it can not use its strength in all the foreign market.
Conglomerate FDI : Advantage is that it try to capture unrelated business in the global market, but the disadvantage is that it try the unrelated business in foreign market which is not known to the business, which may have adverse impact to this initiative.