Experiential Exercises.

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Experiential Exercises.

Category: Case Study

Subcategory: International Trade

Level: College

Pages: 1

Words: 275

International Business
1. Imagine that you are working for a company that has been exporting to Europe for five years. The company now sees an opportunity to expand into Asia. Which modes of entry would you suggest that your company pursue Asia? Would you recommend the same strategy for entering Japan as you would for China? Why or why not?
The use of joint ventures would work perfectly in this situation. It is a common practice that yields high returns based on the profits associated with the practice. Joint ventures enable the company to share the risks involved in the business effectively. Additionally, other factors such as profit and expansion are also the expected benefits that come from joint ventures (Mason A. Carpenter., and Sanjyot P. Dunung 498). The strategy will perfectly work if it’s incorporated in other countries based on the profits associated with it. The operations could be shared among companies which are a key practice that is easily understood based on the mutual profit associated with it.
2. Under what conditions would a company engage in countertrade? Would anyone other than a company from a developing country suggest a countertrade deal? Why or why not?
If a country is a developing country, the trade best applies in the situation. The countries that have limited foreign exchange and credit facilities mostly purchase in the activity. A country can decide counter-purchase, barter and offset. In most situatio…

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