TUGAS TERSTRUKTUR MATA KULIAH

BISNIS INTERNASIONAL

Disusun oleh :

1. Resi Rubiyanti C1C008001

2. Lutfi Daya Avisiana C1C008013

3. Siska Seftiani C1C008029

4. Imanniar Septi Yustriani C1C008049

DEPARTEMEN PENDIDIKAN NASIONAL

UNIVERSITAS JENDERAL SOEDIRMAN

FAKULTAS EKONOMI JURUSAN AKUNTANSI

PURWOKERTO
2009
INTERNET EXERCISE

QUESTION :

1. a. What are the five largest importing nations of U.S. exports? What are the top five imports of
each country?

b. What are the five largest foreign suppliers to the United States ? What are the top five product
that each sells to the United States?

ANSWER :

1. a. The five largest importing nations of U.S. exports and the top five imports of each country are:

Country (%) Goods

Canada (22.2%) machinery and equipment, motor vehicles and
parts, crude oil, chemicals, electricity, durable
consumer goods.
Mexico (12.9%) metalworking machines, steel mill products,
agricultural machinery, electrical equipment, car
parts for assembly, repair parts for motor
vehicles, aircraft, and aircraft parts.
Japan (5.8%) machinery and equipment, fuels, foodstuffs,
chemicals, textiles, raw materials (2001).
China (5.3%) machinery and equipment, oil and mineral fuels,
plastics, optical and medical equipment, organic
chemicals, iron and steel.
UK (4.4%) manufactured goods, machinery, fuels;
foodstuffs.

b. The five largest foreign suppliers to the United States and the top five product that each sells to
the United States are :

China : video equipment

obat-obatan

cotton apparel

petroleum

house hold goods

Mexico : crude oil

 Petroleum

Electronic products

Genuiene Parts

vehicle

Japan : video equipment

car

telecomunication equipment

seafood

Electronic product “sharp” & “sony”

Germany : vehicle,part & accessories

medicine

telecomunication equipment

Cotton apparel

Chemical product

Canada : machinery and aircraft

Crude oil

Machinery and electrical equipment

Optical instruments

Petroleum

Plastics and derivatives products

Method of Entry for Local Manufacturing

Mini Case 2.1

Method of entry for local manufacturing – The McGrew Company

The McGrew Company, a manufacturing of peanut combines, has for years sold a
substansial number of machines in Brazil. However, a Brazilian firm has begun to
manufacture the, and McGrew’s local distributor has told Jim Allen, the president, that if
McGrew expects to maintain its share of te market, it will also have to manufacture locally.
Allen is in a quandary. The market is too good to lose, but McGrew has had no eperience
with a foreign manufactring operations. Because Brazilian sales and repairs have been
handled by the distributor, no one in McGrew has had any firsthand experience in that
country.
Allen has made some rough calculations that indicate the firm can make money by
manufacturing in Brazil, but the firm’s lack of marketing expertise in the country troulse him.
He calls in Joan beal, the export manager, and asks her to prepare a list of all the options open
to McGrew, with their advantages and disadvantages. Allen also asks Beal to indicate her
preference.

1. Assume you are Joan Beal. Prepare a list of all the options and give the advantages
and disadvantages of each.
2. Wich the options would you reccomend?
3. Assuming the president’s calculations are correct and a factory to produce locally the
number of machines that McGrew now exports to Brazil will offer a satisfactory
return on investment, what special information about Brazil will you want to gather?

Answer :

The McGrew Company

1. Asumsi Joan Beal

Foreign manufacturing :

a. Wholly owned subsidiary:

1. Start from the ground up by buiding new plant

2. Acquire a going concern

3. Purchase its distributor, thus obtaining a distribution network familiar with its products.
 The firm may lack either capital or expertise to undertake the investment alone, or there may
be tax and other advantages that another form of investment.

b. Joint venture

1. Corporate entity formed by an international company and local owners

2. Corporate entity formed by two international companies for the purpose of doing business in
a third market

3. Corporate entity formed by a government agency (usually in the country of investment) and
an interantional firm

4. Cooperative undertaking between two or more firms of a limited-duration project.

Advantages:

a. Strong nationalism

b. Acquire expertise, tax, and other benefits

other factors that influence companies to enter joint venture are that ability to acquire
expertise that is lacking, the special tax benefits some government extend to companies with
local partners, and the need for additional capital and experienced personnel.

Some firms, as a matter of policy, enter joint ventures to reduce investment risk. Their
strategy is to enter into a joint venture with either native partners or another worldwide
company. Incidentally, any divisions of ownership in a joint venture is posible unless there
are specific legal requirements.

Disadvantages :

1. Obviously is that profits must be shared.

2. Lack of control over joint venture is the reason why many companies resist making such
arrangements. They feel that they must have tight control of their foreign subsidiaries to
obtain an efficient allocation of investment and prodution and to maintain a coordinated
marketing plan worldwide.

Control with minority ownership

Management contract:

International companies make such contracts with:

1. Firms in which they have no ownership

2. Joint venture partners,

3. Wholly owned subsidiaries.

The last arrangement is made solely for the purpose of allowing the parent to shipon off some of
the subsidiary’s profits. This become extremely important when, as in many foreign exchange-poor
nations, the parent firm is limited in the amount of profits it an repatriate. Moreover, because the fee
is an expense, the subsidiary receives a tax benefit.

c. Licensing agreement

d. Franchising

e. Contract manufacturing

Licensing. Frequently, worldwide companies are called on to furnish technical assistance to firms
that have sufficient capital and management strength. The licensee generally pays a fixed sum when
signing the licensing agreement and pays a royalty of 2 to 5 percent of sales over the life of the
contract (five to seven years with an option for renewal).

In the past, licensing was not a primary source of income for international firms. This changed in
the 1980s, however, especially in the United States, because (1) the courts began upholding patent
infringement claims more then they used to, (2) patent holders became more vigilant in suing
violators, and (3) the federal goverment pressed foreign goverment to enforce their patent laws.

Franchising :

A form of licensing in which one firm contracts with another to operate a certain type of business
under an established name according to specific rules.

Contract Manufacturing :

An arrangement in which one firm contracts with another to produce products to its specifications
but assumes responsiility for marketing.

2. The Elected Method is :

Whoolly Owned Subsidiary

A company that wishes to own a foreign subsidiary outright may (1) start the ground up by
bulding a new plant, (2) acquire a going concern, or (3) purchase its distributor, thus
obtaining a distribution network familiar its product. In this last case, of course, production
facilities will typically have to built.

3. Assuming the president’s calculations are correct and a factory to produce locally the
number of machines that McGrew now exports to Brazil will offer a satisfactory
return on investment, what special information about Brazil will we want to gather is :
Guarantee Supply of Raw Materials
a. Acquire Technology and Management Know-How
b. Geographic Diversifications
c. Satisfy Management’s Desire for Expansion