Explain the international market entry methods.

Methods of entering foreign markets can be assessed as nonequity- or equity-based. Nonequity-based modes of entry include indirect or direct exporting, turnkey projects, licensing, franchising, management contracts, and contract manufacturing. Equity-based modes of market entry include wholly owned subsidiaries, joint ventures, and strategic alliances.

Discuss the debate on whether being a market pioneer or a fast follower is most useful.

A firm can succeed from any position, as the examples illustrate. In general, however, a follower is more likely to succeed if it has lots of resources. Smaller, less-well-financed followers are less likely to be successful.

Identify two different forms of piracy and discuss which might be helpful and harmful to firms doing international business.

Piracy on the high seas is clearly harmful to the exporter and the importer, as well as to members of the ship crews. On the other hand, piracy as a form of distribution may or may not be harmful to the parties involved.

Discuss the channel members available to companies that export indirectly or directly or manufacture overseas.

Channel members are available to those who (1) indirectly export or are exporters that sell for manufacturers, (2) buy for their overseas customers, or (3) purchase for foreign users or middlemen. Direct exporters use manufacturers' agents, distributors, retailers, and trading companies. Firms that manufacture overseas generally have the same kinds of channel members as they have in their domestic market, although their manner of operation may be different from what they are accustomed to.