《I-Marketing》 南京大学IMCH15.ppt

INTERNATIONAL MARKETING 6e Global Market Expansion Foreign Investments Objectives of foreign investments: Firms invest to enter markets Or to assure themselves of sources of supply. Foreign Investments Foreign direct investment An equity investment to create or expand a permanent interest in a foreign enterprise. Two phases of foreign investment Portfolio investment The purchase of stocks and bonds internationally. Manufacturing Major foreign investors More than 45,000 multinational corporations with 280,000 affiliates globally. The terms “foreign” and “domestic” may no longer apply. Reasons for Foreign Direct Investment Marketing factors Growth and profit motivations Circumventing government-erected barriers to trade Access to low-cost resources and supply Local customers preference for domestic goods and services Attempts to obtain low-cost resources and ensure their supply Categories of International Firms Resource seekers are searching for natural and human resources Identify US international firms that can be categorized as resource seekers Which US firms can be considered as human resources seekers ? Market seekers are searching for better opportunities to enter or expand within markets. Efficiency seekers are attempting to obtain the most economic sources of production Reasons for Foreign Direct Investment Derived demand results when businesses move abroad and encourage their suppliers to follow them, creating chain or pattern of direct investment in a market. Reasons for Foreign Direct Investment Government incentives Fiscal incentives tax holidays, allowances, credits and rebates Financial incentives special funding for land or buildings, loans and guarantees, wage subsidies Nonfinancial incentives guaranteed purchases, protective tariffs, import quotas, local content requirements, infrastructure Foreign Direct Investors Positive perspectives Bring in capital, economic activity, and employment Transfer technology and manageri