Entering The International Market For The Small And Medium Enterprises

Along with speeding up of the globalization of world economy and China's realization of its commitments to the WTO, the internationalization of the Chinese enterprises is becoming increasingly important. The foreign market entry mode choice is critical for an enterprise to go into the international market. Unfortunately, most literatures at present are focusing on the huge multinational corporations (MNCs) from developed countries. This thesis tried to examine the feature of entry mode choice made by Chinese SMEs, especially SMEs in automotive parts industry. The structure of this thesis is as follows: The first section introduces the background and the purpose of this paper; The second section gives an overview of the literatures about the foreign market entry mode; In section three, we firstly analyze characteristics of entry mode choice by SMEs and compared it with the method of mode choice taken by MNCs, then we put forward an entry mode choosing method suitable for SMEs, we also give an quantitative model which maximize the utility of expected profit to further analyze SMEs' entry mode choice. In section four, we take the example of SMEs in Chinese automotive parts to examine foreign market entry mode choice in detail. We study the development state of both the automotive parts industry and SMEs in this industry, then we analyze the trends of outsouring in the global automotive parts industry. Based on these analyses, we think "outsourcing cooperation" is a feasible mode for Chinese automotive parts SMEs. The final section gives the conclusion and indicates the direction for further study in the area of foreign market entry mode choice.