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Global Market Strategies and Risks

The document discusses various aspects of globalization including components of globalization, positive and negative effects, modes of entry into foreign markets, and how culture impacts business. It also covers international trade concepts such as letters of credit and Porter's five forces model.

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Professor Ak
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0% found this document useful (0 votes)
8 views11 pages

Global Market Strategies and Risks

The document discusses various aspects of globalization including components of globalization, positive and negative effects, modes of entry into foreign markets, and how culture impacts business. It also covers international trade concepts such as letters of credit and Porter's five forces model.

Uploaded by

Professor Ak
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

alooalisatin o Market

Daternatfonalisolion
GlobaliSaion ot
capital [Link]
presence
bose
Giloba1?Sal Ron of corporote mindset
need accorcate info
+fmelg Pnfo
ts bia in size
Sepmentation
a Morepotentia) is complex
High com petition
To expand its self
et
Resoucees be aeti
To
minmize ris
>Staaes t Lter
"poonestic nationalizotion.
Componß
Lnteraational
.Multi national
. Galaball Company
(ompont
Lompan
>(omponenks ot Glooalisatiog
"Markel
-fechnolog
Prodvtion
oltore
Positve S Neaadive fechs of Globalisal ion

SMode ot entry
"Licensing
franchniSfng
Dmportpor
Manogement (ontcacS.
"areenielà'pnty
Joint Ventu
uenhe Ventures
lechn ica arangements
’Col4hure
CuBtare is set of valuesbelies, rules ad
institutRons hneld by a SpeciEc
group ct people
’omponents of Cuture
A6esthetics
Voes 2 AHitudes
Manne ns Cstons
Social Struture
Relipion
PerGonal Commnunfcation
Physicol enuiconmentí
SocPal Gtcucure.
Social proups
SocfalStcorEicalfon
Social Mobil
’Behavoral Pcacdlces Affeiog Bu Si ness
"SocRal Ranking
MoVOtion
Relationship Prelerene.
" Rick akina
behavio
Latormatin &Tack fhocecsing
Communicatn
Stradeaies o change coith cultu ral Cnuiran me
Value System
Cast bene
. Res Rstonce of toO
Anslsis Gtchog
fchorpe
much cnange
Par ticepoton
Roward Shorfng
Opinion headershi
hearning Abroad
’Poletical heaal Pavironnent
ole 6f Goyt
- Political Tdeclat
Pol:tRcal AiSk
aal1Ssues
’ Pol:Aecal Rrsk
Suste,mic Risks Cuhele political Sysdem
" Pro cediral Rshsmavenenead ofpbtoà)
"Drs trbutie Rrsks (foreign companies)
Catastrophìc Ris kS (huseess enviconment)
Letec of Cred:
Acrten @Auraatee that Selleo eil
receive paent an delwer ot
9oods aspe agreed terms
Tec cnnternational Chambec ot conditioas.
Canmere)
DCel Unitorm customs andà roctice
for Documentarg Credits}
How hciarks
Tmporler's Bank open Con the ceaes
ot importer
9Capar ters Bank send t to expar tecls bank
Exportert Bank Raformexpocter oboot H.
Exporders
Qs per
prspare
c terms
Aoods ond ship gpodàs
) Fxportere Submit docume nts tor
hego tiation in exporterk bank. Bank w l
Sruinize documents
xporter's bank send documets to
imporder's bant
Tmporterk bank Serutinize
docu me ntS
agments ill Send to expor terk bant
txpacters ban k make payment to erpartec.
of Lc
a)Lrrevocable L
85nrmed LC
Trans ferable hC
sG)Untransferable LC
4) Red ClaUSe C

The frameock that naanaaerS appl to


Qetermine the Compe titive nmOVesand
bussiness approncns thot uide the
tfrmie 4he means uSed toochise
objectives
teat epresents manapemen}
Ydea n aou tobest
aHract cstome rG
stae oit a market position
" Conduct peratons
compete effeetuel
"Create walwe
DchieNe pools.
Porter frve force Model
hceat of ne Dotential entrons
hreat of suostkeorodc Lservices
araining pouer of sopplleS
argalaina peuer of buyers
ívalry among curceat ompeitors
Porter Generic Sroteies
"Costlendership
"Dfferenint ion focws

Changes Pnlhdustey Structute


Change ia long-tecm Industy aroasth ate
Technolog lcal Bewelopmevts
Shf ting customer purchose sage pattecns
nnovaions tat ceise Cost 2eHiciene
aange in govt regulations policiec
hmaor ti ms
he difusian o busine sSexectiwe
Qnd technicaexpert se acrass couniec
Value Rs cobat remaRn after expensec
have beended ucted from the reenue
of the fer
LReuenue - expenses value
>imenGions_ot the valye chain
chain- the Get ot linked
8. \Value activiies afirm
Value- Creating
,mrket,
perkocms to esignproduce
product,ie,
deliueryand Suppont dcoctins among
the for mat and in te ottem
the various tunctions
PrfnaA activiies.
Suppa actiuities
.rot Marains
Orlentation -upstrea m,douunstream
Ralue chalnshocld be changed occ to
custormers_ndtheir nees
ompetitors
Dadustries
nviron ment
’he inteqratian Lresponsiueness grid(ra)
prctiles the iater actian of the pressues
or globoal inteprotion and pressures
tor local ees ponsiyeness
Tate,qration O 8
Responsiveness ’ O
D.

Global
yteanat
in
Tadustry type
Hidh
Consu me Electronics
Civil AeccrofÀ
Sepaicondcos Carporate Bankig
BulkChemicals elec Aonic omnerce
DastiuionaL
Autolnob:es
Goods &seruices Cotce Appare)
hat an Healthcare
Ppor tunistic
compang sels to
foceincusAomers
AccoUntin
Processed food
Retail Bankiag
Hig
hoca\ ResponsivenesS,

Galoba TranS natinal


how Tateraatiom Mtidoesti
Low
R
Reoson or
oimpcoue expansibecieress
fhe cost-effectiee ct
thein operadions. new
ne) markets for
fa expand frnto
Customers
follow qlobal customers
Analysis
Scannian vc. Detailed county enty
deter mine the order of
estab|sh resouCe locaiGn Dcross Countr
{ind specife peographic locaiio ns
take port folioappcoach n inuestment
Rlocation Decisog cocess
Strote
Ouèclaing Tatic
Allocating Qmon
Chassing
helocatians locatis
Making final
decision
Opportuniies fvaluaAiag
Soles
Resource
Cost
WE 1HR FRI SAT UN

’Riskfvalugtion
.One comanH risk
to cover ris (Dasaurance
Manager Difference
’perception
>risk taking abilty
expectation
Pol: tical risk
foreian exchqn9e pisk
Compeiue Ris X
Problems oith Research ot Data

himited fesoUrees
false Misleodig9 Dato
Poor receorh nHethodolgt
NonComparable iotanfa
>Externalsource of Lafo
Ladiuualised
peialized
ServRce companies
Gaout Agenct
Taternat ional
rade AsSociotes Org
nfo Serye coapanies
Countru
[Link] Com parison Tbo
Analusis
export
DocumentaBion Tmpart
Customs functions
ioport Breker's
Process
ot 5
chan spp lobal
pciecheapest
sel) Rmport
inaportecs ot
tpes Three
sBroBegimplerment formulate
ket nar Gelect
xport coonselling
On expert Obiain
potential compangs the Ssess A
Strateg export Desianing
an
Exporting 2Daio
Expoct ’Phases
of
Capacitg Os our
pice product productpur on chekmine DoubleDeter
your
Tntegrote
Competikion 4aUr
our Anpw
tormarket
Gtrategt
Understand Lxpond

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