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Plan Sewtex

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SewTex 1. Question 1 a. Arguments i. Decline of american textileindustry ii. Wider market possibilities. Greater profits. iii. Different types of international business: trade, licensing and FDI iv. The greater the investment, the greater the possibilities of profit are, minor risks are reduced. But greater losses possible b. Commitment v. Greater risks in international trade vi. Payment and delivery risks vii. Different laws are applicable in different countries. Need to know ins and outs of foreign law.

2. Question 2 c. Problems encountered viii. Different currency ix. Different language and culture x. Delivery risks d. Advantages and disadvantages of exporting to Europe xi. Advantages: Political stability xii. Disadvantages: Multiple countries = multiple laws; currency exchange rate risks xiii. Direct or indirect exporting? INDIRECT exporting, by licensing or FDI. xiv. Subsidiaries in the countries that treat repairs and sell spare parts. Or partner with a local firm to deal with those aspects.

3. Question 3 e. Licensing? YES f. Advantages and disadvantages xv. Steady income of money (+) xvi. Don’t have to deal with a local on a daily basis (+) xvii. Need to know local IP law (-) xviii. Counterfeiting (-) xix. Sub-licensing (-)

4. Question 6 g. Latin America! xx. Closer market than Europe = less risks due to the distance xxi. Language and cultural risks xxii. Political risks (Latin America’s recent history) xxiii. Consumer Machines market

5. Question 7 h. IP Law is very important, having your products protected in your country doesn’t mean it’s protected

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