Reference no: EM132153227
Part 1: Post a Response
"Entrepreneurship" Please respond to the following:
• Go to the Export-Import Bank of the United States' Website, located at https://www.exim.gov/, and explore the nature and scope of the services it provides to firms engaged in international business. Imagine that you are the owner of a small, reasonably profitable firm. Propose three (3) ways that the Export-Import Bank of the United States can facilitate your entry into a foreign market. Provide a rationale for your response.
• Examine the role that the concept of foreignness plays in an organization's decision to enter into a foreign market. Suggest two (2) actions that a foreign firm can take in order to overcome the liability of foreignness. Provide a rationale for your response.
Part 2: Respond to a Peer
• Go to the Export-Import Bank of the United States' Website, located at https://www.exim.gov/, and explore the nature and scope of the services it provides to firms engaged in international business. Imagine that you are the owner of a small, reasonably profitable firm. Propose three (3) ways that the Export-Import Bank of the United States can facilitate your entry into a foreign market. Provide a rationale for your response.
Export-import bank equips U.S based exporters with the needed protection and liquidity to help them when they want to venture into new markets and diversify their range of customers.
The bank can help my firm through a working capital guarantee program. For instance, this is where the small businesses are assisted in obtaining finances for their companies. Many lenders are not always willing to give loans to companies venturing into risky markets and situations.
Therefore, the export-import bank can help work with the lender to help secure finances for a company (Zuelke & Kirwan, 2016). From this kind of program, my firm will be able to get the needed capital that will help when venturing into foreign markets. The second thing that export import market can help my firm is through the export credit insurance program.
The export-import bank ensures a company's foreign accounts against bankruptcy and political risks in overseas markets (Zuelke & Kirwan, 2016). The third thing is to finance for my firm's foreign buyers. The bank ensures term loans that are extended by the lenders to buyers who are international for the purchase of US capital services and goods.
Examine the role that the concept of foreignness plays in an organization's decision to enter into a foreign market. Suggest two (2) actions that a foreign firm can take in order to overcome the liability of foreignness. Provide a rationale for your response.
Foreignness plays a crucial role in a firm's decision to venture into the foreign market. It affects the acceptance of the brand in the local market, and it also affects the dealings of the firm either formal or informal.
For a firm to overcome the liability of foreignness, it has to follow legitimate actions that are put forward by formal and informal institutions governing market entries.
Therefore, this will help the firm and their products and services be accepted easily in the local markets. The other thing is for the firm to use their resources capabilities well so that after the liability of foreignness has been overcome, they will still have some competitive advantage.