International Trade
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International trade as a way of increasing welfare for all
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Reasons for businesses to go international
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Entry strategies
International Trade
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exchange of goods and services between different countries
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way of increasing welfare for all
Advantages
Absolute
Comparative
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Favorable climate
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Natural resources,
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Etc.
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Labor force
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Modern technologies,
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Etc.
Benefits
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more jobs
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a wider choice of goods for consumers
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wider markets for businesses
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economic growth
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improved living standards
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closer political links
Reasons to Go International
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existence of lucrative markets
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saturated home market
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increased competition
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economies of scale
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‘experience curve’ effects
Advantages
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competitive edge over rivals
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less risk
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fresh ideas and different approaches to solving problems
Criteria for Selection of Strategy
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Financial resources
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Characteristics of a product
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Personnel
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Political and economic situation at home and in foreign country
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Constraints and barriers
Pros and Cons
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International trade
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a way of increasing welfare for all
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Reasons for businesses to go international:
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lucrative markets, saturated home market, economies of scale, ‘experience curve’ effects, etc.
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Entry strategies:
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direct exporting, indirect exporting, foreign production
Thank You for Your Attention!
