Scribd
Upload
21 views

Discussion Questions ch11

This document discusses two discussion questions about entering foreign markets. The first question compares entering a developed market versus an untapped market, noting there are many differences including distribution channels, government attitudes, infrastructure, capital availability, and competition levels. The second question explains that joint ventures are popular for gaining market access and distribution required by many countries, combining product lines for efficiency, leveraging local market knowledge, minimizing risks, accessing local capital and skilled managers.

Uploaded by

bokikg87
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
21 views

Discussion Questions ch11

This document discusses two discussion questions about entering foreign markets. The first question compares entering a developed market versus an untapped market, noting there are many differences including distribution channels, government attitudes, infrastructure, capital availability, and competition levels. The second question explains that joint ventures are popular for gaining market access and distribution required by many countries, combining product lines for efficiency, leveraging local market knowledge, minimizing risks, accessing local capital and skilled managers.

Uploaded by

bokikg87
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 1

Discussion Questions

1. How will entry into a developed foreign market differ from entry into a relatively
untapped market?
The differences between entering a fully developed market and an untapped foreign
market are many and extremely varied. Some of these differences are channels of
distribution, which may or may not be developed. Governmental attitudes toward
business, foreigners, and industry may be very liberal in a growing economy, while
an established market may be very restrictive. Communication and transportation
may be highly limited in untapped markets and highly developed in successful
countries. The amount of capital, banks, and exchange-rate systems will vary
according to the market's development. Finally, the degree and amount of
competition will vary accordingly. To this list, endless factors could be added such
as cost of entering the market, social customs, laws, etc.
2. Explain the popularity of joint ventures.
Joint ventures have become popular for a number of reasons. One important
marketing reason is to gain access to markets. Nearly all of the developing
countries, and many developed countries, require some degree of local participation
for operating in their country. Mergers with distributor companies or companies
which already have well-established local distribution may provide rapid market
access and distribution to foreign companies entering a country. Sometimes
companies join forces in order to broaden the line of merchandise that they have
available, thereby gaining marketing efficiency and better public image. Another
market reason for joining ventures is that local firms possess market information and
the marketing know-how that would take a foreign company years to acquire. Such
participation minimizes the risk of market failure and speeds the marketing effort.
Joint ventures may also arise for financial and manpower reasons. Financially it is
sometimes desirable to merge with foreign companies because the merger provides
access to local capital markets and combines the resources and fund raising
capabilities the companies have. It may also give access to a higher quality and
more capable managerial manpower.

You might also like