Chapter 3- Analyzing and selecting modes to enter, operate in and exit international markets

This podcast accompanies Chapter 3 "Analyzing and selecting modes to enter, operate in and exit international markets" of our textbook.

Choosing an appropriate entry mode is one of the most important managerial decisions to be made when expanding business activities beyond borders. In this chapter, we present the commonly used entry mode alternatives in international business (e.g. exporting, contracting and equity modes), their advantages and disadvantages and provide examples of where the respective entry modes are particularly relevant and widespread. In addition, the reader will gain in-depth insights into the factors that determine the choice of entry mode, including the underlying theories. Furthermore, to find the right entry mode, we offer a three-step entry mode screening process that the decision maker can make use of in business practice. In addition, we account for entry mode changes over time, including foreign market exit. The chapter will conclude with an example from the international fashion industry, where the determining factors are identified and discussed.

Keywords: Entry mode, export modes, contracting modes, equity modes, OLI framework, foreign market exit

International Business Strategy and Cross-Cultural Management: An applied approach

written by: Nicole Franziska Richter (Professor of International Business at the University of Southern Denmark), Jesper Strandskov (Professor Emeritus of International Business at the University of Southern Denmark), Sven Hauff (Professor of Human Resource Management at Helmut Schmidt University in Germany), Vasyl Taras (Professor of International Business at the University of North Carolina at Greensboro in the US)

published by: Edward Elgar Publishing.

Link: https://www.e-elgar.com/shop/gbp/inte...