Unit 2 Discussion Board - Essay Example

Unit 2 Discussion Board In Bit Technology, Inc.’s plan to locate its facilities internationally, the following resources and operational factors should be considered: “the transfer of resources including capital, technology, and personnel” (Quick MBA, par. 11). As a high-tech manufacturing firm, locating facilities abroad would need decision regarding exporting all materials needed for the production of their products or trying to locate materials locally; competencies of human resources in handling the technology, including training and managerial qualifications to oversee various operations and functions.

The organization’s identity has an important role in influencing the structure because depending on the stockholders’ decision, resources, corporate image and competitive advantage, regulatory requirements such as licensing and permits to operate would either be successfully and immediate approved or derailed. The organization can either opt to consider any of the following entry modes: licensing, joint venture or direct investment (Quick MBA, par. 1). The structure of the organization in the foreign market would therefore depend largely on the goals or thrusts and the resources of the stockholders, as well as compliance with regulatory requirements for foreign corporations in the targeted host country.

To operate in a foreign market, the organization should consider the following legal factors, to wit: “limitations on trade through tariffs or quotas; documentation and import regulations; various investment, tax, and employment laws; patent and trademark protection; and preferential treaties. These factors range from huge treaties (North American Free Trade Agreement-NAFTA, General Agreement on Tariffs and Trade-GATT) that profoundly shape the international transactions of many nations to trade barriers erected by a single country.

” (International Marketing, par. 13). Works Cited “International Marketing.” Reference for Business. 2011. Web. 14 June 2011. Quick MBA. Foreign Market Entry Modes. 2010. Web. 14 June 2011. < http://www.quickmba.com/strategy/global/marketentry/>