UNIVERSITY OF MUMBAI

PROJECT REPORT ON
STUDY ON FOREIGN ENTRY ALTERNATIVES
(STRATEGIC MANAGEMENT)
MASTERS OF COMMERCE
(BUSINESS MANAGEMENT)
SEMESTER 1
2014-15
SUBMITTED BY
MR. SALMAN MAKDA
ROLL NO.:11
PROJECT GUIDE
MS. POONAM KAKKAD
K.P.B HINDUJA COLLEGE OF COMMERCE
315, NEW CHARNI ROAD, MUMBAI-400 004

M.COM (BUSINESS MANAGEMENT)

1stSEMESTER

STUDY ON FOREIGN ENTRY ALTERNATIVES

SUBMITTED BY
MR. SALMAN MAKDA
ROLL NO: 11

CERTIFICATE
This is to certify that Mr. Salman Makda of M.Com Business
Management Semester- 1 [2014-2015] has successfully completed the
Project on STUDY ON FROEIGN ENTRY ALTERNATIVES
under the guidance of Ms. Poonam Kakkad.

Project Guide

________________

Course Coordinator

________________

Internal Examiner

________________

External Examiner

________________

Principal

________________

Date: ______
Place: Mumbai.

DECLARATION

I, Mr. Salman Makda student of M.Com Business Management,

semester- 1 (2014-2015), hereby declare that I have completed the
project on STUDY ON FOREIGN ENTRY ALTERNATIVES

The information submitted is true and original copy to the best of

my knowledge.

SALMAN
MAKDA

ACKNOWLEDGEMENT

I owe my special thanks to the Principle Dr. Chitra Natrajan and

the Co-coordinator of M.com Dr. (Ms) Minu Madlani for giving me an
opportunity for this project work. I would like to give my thanks to the
Project Guide Ms.Poonam Kakkad for her guidance and kind
assessment that she has provided me and the inspiration in valued
guidance and ideas throughout the project. I am also thankful to the
library staff of K. P. B. Hinduja College Of Commerce who cooperated with me and even all those seen and unseen hands and heads
which helped me in the completion of this project.

INDEX
CHAPTER NO.

1
1.1
1.2
1.3
1.4
1.5
2
3
4

TOPICS

PAGE NO.

TITLE PAGE
CERTIFICATE
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
INTRODUCTION
OBJECTIVES OF THEY STUDY
METHODS OF RESEARCH
SCOPE OF THE STUDY
LIMITATIONS
CHAPTERS SCHEMES
CONCEPTUAL FRAMEWORK
MODES OF ENTRY INTO FOREIGN MARKETS
EXI T STRATEGIES
CONCLUSION
BIBLIOGRAPHY

1
1
1
2
2
2
3
7
31
36
37

EXECUTIVE SUMMARY
For developing countries, the textiles and clothing industries have
traditionally been an important gateway to industrialization and increased exports.
With the expiration of the Agreement on Textiles and Clothing, the quota system
originally set up through the Multifibre Arrangement was phased out. This has
important implications for the allocation of export-oriented production and is likely

to affect in various ways a large number of developing countries that rely heavily
on such exports.
An institution originally intended to protect the interests of importing
developed countries, the Multifibre Arrangement (MFA) imposed quanta restraints
on textile and apparel imports.Governing trade policy in textiles and apparel for
thirty years (1974-2004), the MFA was reformed on four occasions, with each
revision attempting to accommodate the concerns expressed by the domestic
industry lobbyists. Despite increasingly restrictive trade barriers, foreign
competitors were able to take advantage of various opportunities to transship their
goods, and consequently, continued to acquire an increasing share of the U.S.
textile and apparel market. While the demise of the MFA forced countries to
remove the quota restraints that were imposed under the multilateral framework,
the U.S. continues to maintain considerable trade barriers against textile and
apparel imports.This paper applies Douglas Norths theoretical framework
concerning the process of institutional change in order analyze the principal forces
underlying the MFAs multiple reforms, and to further explain the longevity of
quantitative restraints on textiles and apparel.