Experiential Exercises.

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International Business
1. Imagine that you are working for a company that has been exporting to Europe for five years. The company now sees an opportunity to expand into Asia. Which modes of entry would you suggest that your company pursue Asia? Would you recommend the same strategy for entering Japan as you would for China? Why or why not?
The use of joint ventures would work perfectly in this situation. It is a common practice that yields high returns based on the profits associated with the practice. Joint ventures enable the company to share the risks involved in the business effectively. Additionally, other factors such as profit and expansion are also the expected benefits that come from joint ventures (Mason A. Carpenter., and Sanjyot P. Dunung 498). The strategy will perfectly work if it’s incorporated in other countries based on the profits associated with it. The operations could be shared among companies which are a key practice that is easily understood based on the mutual profit associated with it.
2. Under what conditions would a company engage in countertrade? Would anyone other than a company from a developing country suggest a countertrade deal? Why or why not?
If a country is a developing country, the trade best applies in the situation. The countries that have limited foreign exchange and credit facilities mostly purchase in the activity. A country can decide counter-purchase, barter and offset. In most situations, the use of offsetting and barter is the most common means applied.

It best applies to companies from developing countries based on the fact that they mostly have the surplus. It is effectual takes place in case the company has a surplus to gain access to the product that they desire. Therefore, developing countries are supposed to use countertrade.
3. Imagine that you work for a custom-bicycle company that has thus far only manufactured in the United States. You’re under pressure to reduce costs. What options would you explore? Would you consider sourcing some of the components from countries with lower material costs? Would you consider outsourcing some of the manufacturing? Would you set up a subsidiary in a country with lower labor and material costs to handle the manufacturing? Explain the advantages or disadvantages of these options
The lowering of production cost through technology is an effective practice that could be perfected in this perspective. Outsourcing the manufacturing costs is an effective measure based on the fact that the labor costs ((Mason 500). The reduction of the labor costs is cheaper based on the costs involved I hiring both skilled and unskilled labor in the parent country. Basically, the reduction of costs is a practice that the company needs to include several skeptics to ensure that it succeeds.
Works Cited
Mason A. Carpenter., and Sanjyot P. Dunung. International Business. 2011.