Approach for Managing International Business

International business
management
Contents

Question 1 Justified recommendation to Draphram Furniture Ltd. for entering mode to use in Sokovian
market..........................................................................................................................................................3
Question 2 Define and discuss various political risks that Draphram Furniture Ltd will need to monitor in
Sokovia........................................................................................................................................................4
Question 3 Define as well as discussion of various currency exchange risks which Draphram Furniture
Ltd. requires to monitor in Sokovia and possible responses to Risk............................................................6
Question 4 Justified recommendation for a specific approach towards managing an international busines7
REFERENCES............................................................................................................................................9

Question 1 Justified recommendation to Draphram Furniture Ltd. for
entering mode to use in Sokovian market.
Foreign market entry modes are said to be methods by which company could expand its
operations in nondomestic market. As there are basically two types of market entry modes which
is based on equity as well as non-equity. As non-equity consists of exports as well as contractual
agreements along with equity modes consists of joint ventures and subsidiaries. There are
generally some common entry modes of international market which are exporting, partnering,
Greenfield venturing, acquisition as well as licensing. As by selecting out licence along with
franchising it helps companies to lower down their financial risk as well as also provides control
over manufacturing for production of products as well as services in a new country.
As some of entry modes are to be explained as:
 Exporting: As it refers to marketing as well as direct sale of domestically manufactured
products as well as services in different countries. Exporting is said to be a traditional
along with best tablets method of reaching to foreign markets which is Sokovian markets.
 Licensing and franchising: As when any company wants to enter in international
markets quickly than by taking limited financial as well as legal risk licensing agreement
could be considered to be an entry mode in order to carry international business practices
where it allows foreign company to sell their products of producer or to implement in
terms of intellectual property in exchange of royalty fees.
 Partnership: This entry mode into a international business market consists of having
contractual agreements among two or more companies that stupid its as well as consists
of various parties in order to operate in a specific way a for a specific time to accomplish
their common objective.
 Acquisitions: It is set up a transaction where company gives a control of another form by
purchasing their stock along with exchanging their stock for their own. Acquisitions are
said to be appealing as they provide company a quick as well established axis in terms of
New market.
In terms of case study of Draphram furniture limited there are various entry modes that
could be used by company in order to make their entry into Sokovian markets. As by providing
various justifications to company that could be used while entering into international market
where is evaluation could be done in terms of identifying their strength and weaknesses for
carrying out business practices in Sokovian markets.