Question

This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.

The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment

Answer 1

1. Yoplait ⇒ C. Licensing . Yoplait is the largest yogurt license in the world.

2. Moodmatcher lipstick ⇒ A. Indirect Exporting . It produces their products in the US and then sells them abroad through trading companies.

3. McDonald's ⇒ D. Franchising . McDonald's is one of the largest franchises in the world and it operates in a similar manner everywhere.

4. Ericsson and CGCT ⇒ E. Joint Venture . Ericsson is a Swedish telecommunications company and CGCT is a French company.

5. Boeing ⇒ B. Direct Exporting . Boeing is America's largest exporter. It opened its first overseas facility on December 15, 2018, in response to the trade dispute between China and the US. But the vast majority of its planes are still built int eh US.

6. Nissan ⇒ F. Direct Investment. Nissan is part of a French-Japanese car company that produces its cars on their own plants located around the world.