entry mode

SELECCIONAR Y ADMINISTRAR MODOS DE INGRESO

ADMINISTRACIÓN INTERNACIONAL

Entry Modes • Ins%tu%onal arrangement by which a firm gets its products, technologies, human skill, or other resources into a market. • Even big MNE’s don’t use a single entry mode. These companies adapt their strategies to use different entry modes. ADMINISTRACIÓN INTERNACIONAL

Expor%ng, Impor%ng & Countertrade

Contractual Entry

Investment Entry

ADMINISTRACIÓN INTERNACIONAL

" Expor%ng:

-
-

Direct Expor%ng Indirect Expor%ng

" Countertrade:

Expor%ng, Impor%ng & Countertrade

Prac%ce of selling goods or services that

are paid for, in whole or in part, with

other goods or services.

ADMINISTRACIÓN INTERNACIONAL

Condi9ons favoring this mode

Advantages

Disadvantages

• Low sales poten%al; liKle

• Minimizes risk and

• Costs are increased

adapta%on required

investment

due to trade barriers

• Distribu%on channels close to

• High entry speed

and tariffs

factories

• Increases economies of

• Transporta%on costs

• High produc%on cost at des%na%on scales and use of exis%ng • Limited access to local • Open imports policy • High poli%cal risk

infrastructure

informa%on