Question

- Activity i Seved Global Market Entry This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential. The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting. licensing. joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic. Yoplait Moodmatcher lipstick McDonald's Ericsson and CGCT Boeing Nissan Indirect Exporting Direct Exporting Licensing Franchising Joint Venture Direct Investment Reset

Answer 1

L.H.S	R.H.S.	Rationale
Indirect Exporting	Moodmatcher lipstick	Rationale: A company like moodmatcher lipstick produces its product domestically and sells it in foreign countries through an intermediary.
Direct Exporting	Boeing	Rationale: A company like Boeing produces its product domestically and sells it in foreign countries without an intermediary.
Licensing	Yoplait	Rationale: A company like Yoplait offers the rights to patent, trademark, trade secret or other valued intellectual properties in exchange for a royalty or fee.
Franchising	McDonald's	Rationale: Companies like McDonald's offer license to open new franchises and is one of the fastest growing market entry strategies.
Joint Venture	Ericsson and CGCT	Rationale: Ericsson, a swedish telecommunications company, formed a joint venture with a french switch maker company CGCT.
Direct Investment	Nissan	Rationale: A domestic firm like Nissan invests in and owns a foreign subsidiary.