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Lecture 04: Modes of Entry II
The 4th lecture also we will continue with the mode of entry into the
international business
...
The complications arise because of the political climate, the
cultural climate and the social climate
...
Why it should enter that is very we have understood
because there is a need to expand your business
...
In this case,
both parties are committed to joint risk taking and joint profit sharing
...
This happens true mostly in cases where there are huge
investments required
...
Investments required
...
Johnson and Johnson is the holding company; the
subsidiaries are Janssen, Pharmaceutica,, Depuy, synthes,, Lifescan,,
Actelion,, neutrogena,, and ethicon
...
Excessive trade regulation encourages local production and will lead to
an equity entry mode like wholly owned subsidiary or joint venture
...
it is absolutely fine we need to support our
domestic producers
...
Indian Oil Corporation
...
the company is setting up a state of the art bulk storage terminal at Mer
rouge to stock 24 thousand metric tones of vital petroleum products and
25 modern petrol and gas stations
...
besides,, IoC also has found a whollyowned
subsidiary in Sri
...
Indian oil subsidiary has also been granted
customs duty exemption for import of projectrelated, plant, plant,
machinery and equipment during project implementation period for a 5
years
...
The government has taken
some action, some kind of strategy build up, some policies strategies to
attract different countries firms to come to their local country
...
as ioC had low cost
operation exporting oil and related products was economically effective
...
Also the
government wants to develop skill set in their nation with the help of
outside companies
...
the level of
competition is also low
...
M&m has been selling its tractors and utility vehicles
in foreign markets including USA
...
Mahindra