Question

Explore your Own Case in Point: identify the appropriate Global Entry Strategy for your Chosen Company After reading this chapter you should be prepared to answer some basic questions about your target company.

3) What is the host country’s attitude toward your company? At the government level? At the customer level? How receptive and appreciative is the host country toward your com- pany’s business?

Answer 1

1. First, determine how much risk you are willing to take in international business,(i.e. how much capital can you afford to lose based on a worst case scenario ?) As you know, the least risky method of entry overseas will be through export and import business.

2. If your ambition is to generate high business returns through international business you will need to (a) determine what your company's competetive advantage is and (b) identify why you would want to have an overseas operation. To maximize revenue ? To minimize cost ? Both ? Or to diversify risk ?

3. Now that you have a good idea of how much risk you are willing to take, and also why you would want to invest in an overseas operation, it is relatively easier for you to determine the entry mode into the international marketplace.