HR Solutions: International Market Entry Strategy - Verdant Leisure

This report delves into Human Resource strategies for entering new international markets, focusing on exporting and importing, their advantages and disadvantages, and the differences between merchandise and service trade. It evaluates various entry modes such as licensing and joint ventures, recommending licensing as the most suitable method for Verdant Leisure. The report concludes that international business, encompassing export and import activities, along with diverse market entry strategies, fosters economic growth and offers enhanced options for consumers. It also highlights the importance of understanding international trade dynamics and selecting appropriate market entry approaches for business success.

Human Resource
Introduction
The exporting in modern economies is important as it offers people and firms more
markets for their goods. The export and import is encouraged to foster economic trade. It can be
a most profitable business if planned properly as it is a trading activity on the international scale
(Ahmed, M and et.al., 2020). In this exporting and importing with its advantages and
disadvantages, difference of merchandise and service import & export is discussed. Furthermore,
the entry modes in international markets evaluated and recommendation is provided on
appropriate method.
Importing and Exporting with its advantages and disadvantage
Importing- The importing defines to the purchase of foreign products and bringing
them into the home country. The value of country import exceeds the value of exports it leads to
negative balance of trade known as trade deficit.
Advantages
 The importing helps in reduction
of manufacturing cost as
companies imports from other
countries as they find the low cost
of production which results in
higher profits for the company.
 In the emergency case the country
is not able to produce enough due
to drought, flood then importing is
the way that help the country in
averting by avoiding the temporary
shortage of resources (Wisniewski,
R. and Brzezicka, J., 2020).
 The importing is the international
trade which helps in developing
and maintaining the strategic
relation with other nations.
Disadvantages
 The importing has the
disadvantage of outflow of foreign
exchange because the companies
purchase goods from other nations
then they pay in their currency
which leads to pressure on
domestic currency by the importer
which ultimately leads to reduction
in foreign exchange of the country.
 In the importing there is a risk of
country and currency risk if the
company is completely dependent
on other countries for their raw
material which can impose tariff
on their imports.
TAPPING INTO NEW AND INTERNATIONAL MARKET (PART 2)
Exporting- It defines the procedure of selling goods & services to some other countries that are
produced in the home country. The country economy is boosted and creates fiscal surplus as it offers people
and firms more market for their goods.
Advantages
 The exporting increases the
competitiveness as it gives exposure to
new ideas, management practices,
marketing techniques and ways of
competing to have better position in
overseas market.
 The sales is boosted and revenue is
increased by selling goods and services
to market of other nations (Zhou, J.,
2020).
 The exporting provides the great speed
of entering into market.
Disadvantages
 To develop extra market, it takes more
time and pay back periods are longer.
 In the exporting the companies are
required to modify the products to meet
foreign country safety and security
needs.
 The distribution costs is high in the
foreign market such as maintaining
suitable channel of distribution. It also
involves the risk in export trade such as
credits, collection and financing.

Difference between merchandise and service of Import and Export
Merchandise of import and export Service of import and export
 The merchandise refers to the goods
that are tangible commodities which
can be seen or felt.
 It defines to the international earning from
the non-product where the company
receives the payment for the services.
 In the merchandise import, the
commodities are bringing from other
nation to the home country.
 In the service import, the home country
pays for the services taken from other
nations.
 In the merchandise exports, the goods
are sent from domestic country to
other countries.
 In the service export, the companies
provide services in the foreign nation and
receives payment.
 Example- The goods are sold in
Singapore from UK is export and if
received it will be considered as
import for Singapore.
 Example- If any tourist stays in UK and
pays at UK hotel would be considered as
export and vice versa for imports.
Different methods of entering into international markets with its advantages and benefits
Licensing- In the home country the other country is permitted to use the property and fee is
charged for specified period. It includes the intangible property like trademark, patents, production
technique etc. in the foreign market the licensee pays fee use the right of [property which is also
considered as manufacturing & marketing cost. There is high return on investment which requires
little investment. It is similar to franchising (Nurse, K. and Clarke, J., 2021).
Advantages
 It helps in obtaining the extra
income for technical know-how and
services.
 It has market entry with high trade
barriers.
Disadvantages
 Through the incompetent partner there is
a risk of having trade mark and
reputation is ruined.
 The licensee can become a competitor
once the term of agreement is concluded.
Joint ventures- It is a type of partnership which encompasses of dual businesses to begin jointly
owned business. One proprietor is from the resident corporate. The businesses offer novel corporate
with organization team and regulator the portion of joint ventures. The incomes and hazard are shared
correspondingly among the members. It helps in entering international market to the newly created
company.
Advantages
 It provides faster access to foreign
markets.
 The reputation of resident partner
provides the credibility to joint
venture in the market place.
Disadvantages
 There can be conflicts in shared
ownership if goals and objectives differs.
 It has the difficulty in obtaining the debt
financing.
Recommendations
From the above it can be said that the licensing is the appropriate method for the verdant
leisure for the entry in the new international market. It provides the right to use the property and have
well established rules and regulations that governs the franchising model.
CONCLUSION
It has been concluded that international business has the export and import for dealing with
new markets and various modes of entry in international market is determined which helps in growth to
the economy and gives the better option to the customers.
REFERENCES
 Wisniewski, R. and Brzezicka, J., 2020. Glocal real estate market: evidence from European
Countries. Journal of European Real Estate Research.
 Nurse, K. and Clarke, J., 2021. Trade Policy and Innovation Governance: An Analysis of
Trade Challenges in the Pacific and Caribbean Economies. In Shaping the Future of Small
Islands (pp. 71-92).
TAPPING INTO NEW AND INTERNATIONAL MARKET (PART 2)