Entry Modes in International Business Essay

2935 Words Jan 21st, 2015 12 Pages
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Essay Sample: Page 2
Consequently, a company has to adjust his whole strategy to the aim of outperforming competitors. Therefore, getting a new customer base, offering a service with a higher quality as well as cheaper products, are the main advantages a company can achieve to increase their market share. To acquire these abilities a company needs to go global in order to gain advantage from the cultural differences as well as differences in the workforce. Due to the increasing importance of foreign markets, many companies ask themselves, which is the most successful way of entering a new country. Therefore, the purpose of this paper is to clarify the most important forms of international business to go global.



In order to answer the problem statement, this paper is structured as follows. At first, a short overview about the motives of doing business in other nations will be given. This will be followed by a short explanation of the difference in equity and non-equity international businesses, which are the main categories. Afterwards the different types of international business will be defined and their advantages as well as disadvantages will be clarified. Finally, this paper ends with a conclusion, which sums up the most important points.



2. Motives of International Business

The entry modes that will be discussed throughout this paper are strategies for going abroad. In today´s economy internationalization is not just adding value to your
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