HALÍK, Jaroslav; FIALOVÁ, Helena. Strategy for Companies Entering Foreign Markets
1st ed. Prague: Metropolitan University Prague Press, 2016. ISBN 978-80-87956-51-9
The book “Strategy for Companies Entering Foreign Markets“ was written as an output from the research project named “The Research on International Economic Relations 2016-2020“ (CEI 34-10), which has been conducted under the supervision of professor Vaclav Kubista, head of the International Business Department at Metropolitan University Prague.
The main aim of the book is to analyze, describe and recommend the various ways a company can expand to foreign markets.
In the first chapter, the authors analyze the process of companies´ internationalization, their role in global value-adding-chains, new types of supplier-distributor relations, and the ways of managing flows of goods, services and money throughout the global interaction.
The second part focuses on international markets from the perspective of business cycles, macroeconomic indicators and effectiveness of fiscal and monetary policy pursued by governments. The authors explain the role and types of tariff and non-tariff barriers, international trade agreements, international organizations and economic integration groups. They pay a special attention to the international commodity agreements and to the protection of intellectual property rights.
The middle part of the book describes the characteristics of different markets, focusing on the basic, cyclical, seasonal and random factors that influence supply and demand. Based on many examples the chapter shows an interaction between production, consumption, substitution, and complementary markets. This part is an important bridge between general economic theory and practical understanding of business.
The final fourth part gives a detailed overview of the methods and strategies of entry into international markets. It consists of three logical sections. The first describes the market entry in a production sector. The authors explain contractual assurance of investment projects, foreign industrial facilities, technical and production engineering and mining of raw materials. They also explain how to conclude contracts on international production sharing, joint venturing and direct investing. The next part focuses on foreign market entries in the area of sales and distribution. Authors describe the methods of direct exporting and importing, warehousing, setting up own subsidiaries and affiliates, creating the international holding companies, etc. In the last section, the authors write about foreign market entries in services. They describe the role of business agents, forwarding and logistics companies, financial institutions, and consulting and management service providers.
The book can to serve as a practical guide for companies in private sector expanding to the foreign markets, and for public institutions active in the area of international trade and foreign economic relations. It can also be used as a study material for international business courses on the university level.