Business Expansion Strategies

2001 HSC origin Studies | Topic 5 | Global origin -1- of -3Global Business Strategy Unit 2 GLOBAL BUSINESS system The Methods of internationalist Expansion Exporting Usually the business first gear bear with global business. Exporting Is the selling of products in foreign home(prenominal) markets. Usually a low cost, low risk mien of penetrating into global markets. Sole apportionrs and SMEs greennessly call intermediaries to exportation their goods, in a process known as mediate exporting. Government departments such as the DFAT and Austrade provide culture to olive-sized business about exporting to other countries. FDI alien luff Investment Method of international expansion, by coercive engross in property, assets or companies oversees. Involves a higher take of fealty money, equipment and personnel transfers do occur. Usually requires large amounts of capital, thence the players are usually multinational or transnational corporations. Origi nates from a cast of business arrangements, including: o Wholly owned footsloggers § A business that is entirely owned and controlled by the arouse union. § Achieved with by establishing a new business, or purchasing an subscribe uping business o Joint Ventures § Part self-possession of some other business with other business and partners.

§ Each make do contributions such as personnel, equipment, capital etc. o strategic Alliances § Arrangements between two or more businesses with a normal busies objective. § Partys are willing to cooperate, but puddlet wish to form a separate business. § Example s The mavin experience Alliance encompas! sing many airlines from well-nigh the globe. reallocation of issue This is where the production of the business is reallocated to one of many strength locations that exist worldwide. There are many reasons why companys engage in this practice including: o trim down lug Costs § Taking advantage of lower press be in other countries. o Get around trade barriers § In order to...If you want to get a wide-cut essay, order it on our website: BestEssayCheap.com

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