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Chapter Five: International Agribusiness - Coggle Diagram
Chapter Five: International Agribusiness
Learning Objectives
Understand why agribusinesses seek international markets
Recognize the importance of global markets
Describe key challenges in entering and operating in international markets
Explore how culture
Identify entry methods into
Introduction
Why This Matters
Understanding international business helps managers
Seize emerging global opportunities
Respond to competitive threats
Develop a sustainable global strategy
Why Go Global?
Foreign agribusinesses
Rising Competition
International markets offer faster growth and new opportunities
Domestic markets are maturing — limited growth potential
Benefi ts from doing business internationally
Exports and sales
Take advantage of scale economies
Reduce risk by diversifying across markets
Lower costs of production
Access lower-cost raw materials through international sourcing
Broaden access to credit
Leverage experiences from operating in international markets into domestic markets
Capture benefi ts of a global brand
Opportunities for smaller firms
It’s Not Just for Giants
Multinational firms dominate in scale and R&D
But small agribusinesses
International agribusiness trends
The growing population in the global market
Bulk commodities, high-value products
World Trade Organization
Challenges in international markets
Cultural differences
Sense of self and space
Communication and language
Dress and appearance
Food and eating habits
Time and time consequences
Relationships
Values and norms
Beliefs and attitudes .
Mental process and learning
Work and work habits
Exchange rate fl uctuations
Accounting differences
International law and property rights issues
Sanitary and phytosanitary regulations
Management challenges
Entering international markets
Modes of entry
Exporting
Indirect exporting
Direct exporting
Licensing
Direct investment
Start-up strategy