Expanding Into Foreign Markets

The video tutorial discusses various methods for companies to expand into foreign markets. It covers global sourcing, import-export, licensing and franchising, strategic alliances, joint ventures, and foreign direct investment. Each method is explained in terms of its processes, benefits, and challenges, providing a comprehensive overview of international business expansion strategies.

What is the primary benefit of global sourcing for companies looking to expand internationally?

• Reduced labor costs

• Increased brand recognition

• Enhanced local partnerships

• Simplified tax regulations

Which method involves creating goods in one country and selling them in another?

• Franchising

• Joint Venture

• Licensing

• Import-Export

How does franchising differ from licensing in international business?

• Franchising follows a predefined business model.

• Licensing involves joint ownership.

• Licensing requires creating a new brand.

• Franchising involves selling products directly.

What is a strategic alliance in the context of international business?

• A complete acquisition of a foreign company

• A merger of two companies

• A temporary project collaboration

• A partnership with a foreign business to sell products

Which method of international expansion involves the highest level of risk and investment?

• Import-Export

• Foreign Direct Investment

• Global Sourcing

• Licensing