MEANING

 International entrepreneurship is the

process of an entrepreneur conducting
business activity across the national
boundaries. It may consist of exporting,
licensing, opening sales office in another
country etc.
 International entrepreneurship is defined as
development of international new ventures
or start ups that from their inception engage in
international business, thus viewing their
operation domain as international from the
initial stages of international operations.
 IMPORTANCE OF INTERNATIONAL
ENTREPRENEURSHIP
 International entrepreneurship is beneficial as if
sales of company is declining in domestic market,
they can sell products in international market
considering demand for product in other country
market customers.
 Entrepreneur can sell their products in foreign
market which have reached the maturity stage of
their life cycle in domestic markets and earn
profit by their sales.
 Companies which are incurring high level of fixed
costs can lower their manufacturing costs by
spreading these fixed costs over long number of
units by selling their products in global market.
 Entrepreneur can improve their
entrepreneurial competitiveness
enhance reputation. and
 Entrepreneur in process of satisfying foreign
customers have to produce product as per
their quality expectation by which
entrepreneur will not only produce quality
product in international market but also in
national market.
 Internationalization of business will teach
entrepreneurs how to cultivate habit
of
customer relation management ( CRM )
 Being global will make the entrepreneur
sensitive towards their customers – domestic,
adopt more respectful attitude towards
foreign habits and customers.
 Entrepreneurs can hire motivated, multi
lingual employees, learn constantly about
the foreign markets. They will think globally
and start developing an outlook from a global
prospective.
 IMPORTANCE OF INTERNATIONAL ENTREPRENEURSHIP
TO FIRM
 Increased sales and profit : when the entrepreneurs
are not able to earn profit or demand for their product
decreases in local market they can sell their products
in foreign market where life cycle of product is in
favourable condition. E.g. Apple earned more profits
from international business than in local market US in
the year 1994. ( $ 390 million foreign market / $ 310 in
Indian market .
 Lower cost if the
manufacturing company
manufacturing
product in home cost :
country, than by can
company manufacturing
opt in for
production process in host
increases
country, on the contrary if
the company is in no profit or no loss situation than
company can choose in any option. E.g Mc Donald's.
 Advantage of cheap labour : quantity and quality of
labour is one of the major challenge for every
business, if the labour is cheap in foreign countries
than company can outsource required labour if
organization is into foreign operations. E.g increasing
cost of labour in china has forced companies to
search in for other options for outsourcing company
activity to other countries were cost of labour is less.
 Utilization of talent and managerial competence :
when business are not able to get required talented
work force in country, they can get the activity
outsourced or hire host country employee which has
given birth to concept of expatriation.
 Growth opportunity : entrepreneurs whose core
business strategy is expansion and diversification of
business, international business is one of the primary
platform to achieve these objectives.
 Expansion of domestic market : international
business causes domestic market to expand
beyond national boundaries. When the domestic
market has bee fully tapped than company can go
in for expansion of business to market their
products in international market. E.g Sony
 Globalization of customers : it refers to when
customers in country prefer purchasing foreign
brand products than domestic companies have to
go in for internationalization of business to keep
in pace with competition to attract customers.
Tata international begin to operate in
international market after entry of
competitors in Indian market
foreign
like ford.
 Globalization of competitors : international
business increases the opportunity not only for
the survival and growth but also motivates
companies to face competition from global
entrants in market, which in turn leads to
growth of market, pursuing global scale
efficiencies etc.
 Pay offs of international business :
international business improves image of the
company in domestic market and attracts more
customers in domestic market due to
internationalization of business. E.g Ranbaxy
 DIFFERENCE BETWEEN INTERNATIONAL
AND DOMESTIC ENTREPRENEURSHIP
 Economic system : when an is
operating
entrepreneurin national level he is required to
understand economic conditions with in country,
but at international level he should be having
information about economic system of countries he
running business which includes currency rate,
phase of business cycle etc.
 Stage of economic development : when
entrepreneur is operating at domestic level he
should focus on development state of domestic
country, on the contrary when he is operating on
international scale he has to view country from
developed, developing and underdeveloped
perspective and accordingly plan in business
strategies in economy.
 Cultural : entrepreneur operating
sensitivity
at national level should understand cultural
issues persisting in home country and at
international level he has to understand and
manage cultural diversity of customers as well
as employees in company.
 Technological environment : even though
technology is advanced at larger scale , still
there are technological variations persisting in
various countries depending on time of
implementation, updation of technology etc
which has to be analyzed by entrepreneur and
accordingly plan in business operations.
 Government policy : entrepreneur going in for
internationalization of business have to study
domestic as well as international policy, as
restriction laid in home country for export of
goods affect trade of entrepreneur and
restriction in host country on entering of new
entrepreneurs in their company.
 Political and legal environment : politics and
laws play a critical role in
international business as well as
domestic business.
Entrepreneur should be aware about political
and legal environment in the domestic as well
as international market.
 ENTREPRENEURIAL ENTRY INTO NEW BUSINESS
 Exporting : means selling goods made in one
country to another country. Exporting normally
involves the sale and shipping of products
manufactured in one country to the customer
located in another country.
 Direct exporting : implies where company
takes full responsibility for making its goods
available in the target market by selling
directly to end users normally through its own
agents.
 Indirect exporting : when the exporting
company does not posses the
infrastructure
necessary to involve itself in direct
exporting, indirect exporting takes place. It
takes place when the export company sells its
to intermediaries who in turn sell the same
products to the end users in foreign markets.
 Licensing : involves an entrepreneur who is a
manufacturer ( license ) giving a foreign
manufacturer ( licensor ) the right to use
patent, trade mark, technology, production
process, or product in return for the payment
of loyalty.
 Turn key projects : Turnkey refers to
something that is ready for immediate use,
generally used in the sale or supply of goods or
services. It is a contract under which a firm
agrees to fully design, construct and equip a
manufacturing/ business/ service facility and
turn the project over to the purchaser when it
is ready for operation for a remuneration.
 Management contract is an arrangement under
which operational control of an enterprise is vested
by contract in a separate enterprise which
performs the necessary managerial functions in
return for a fee. Management contracts involve not
just selling a method of doing things (as with
franchising or licensing) but also doing them. A
management contract involves a wide range of
functions, such as technical operation of a
production facility, management of personnel,
accounting, marketing services and training.
 Foreign direct investment (FDI) is direct
investment into one country by a company in
production located in another country either by
buying a company in the country or by expanding
operations of an existing business in the country
 Minority interest :a company having interest or
ownership of less then 50 percent in another company is
known as minority interest/ A significant but non-
controlling ownership of less than 50% of a company's
voting shares by either an investor or another company.
 Majority interest : majority interest is an ownership
interest greater than fifty percent (50%) of the voting
interest in a business enterprise.
 joint venture (JV) is a business agreement in which
parties agree to develop, for a finite time, a new entity
and new assets by contributing equity. They exercise
control over the enterprise and consequently share
revenues, expenses and assets. A joint venture takes
place when two parties come together to take on one
project. In a joint venture, both parties are equally
invested in the project in terms of money, time, and
effort to build on the original concept.
 Mergers : The combining of two or more companies,
generally by offering the stockholders of one company
securities in the acquiring company in exchange for the
surrender of their stock / Mergers and acquisitions refers
to the aspect of corporate strategy, corporate finance and
management dealing with the buying, selling, dividing and
combining of different companies and similar entities that
can help an enterprise grow rapidly in its sector.
 Horizontal merger : Horizontal merger occurs when a firm
is being taken over by, or merged with, another firm which
is in the same industry and in the same stage of production
as the merged firm, e.g. a car manufacturer merging with
another car manufacturer / A horizontal merger is when
two companies competing in the same market merge or
join together. E.G amalgamation of Daimler-Benz and
Chrysler
 Vertical merger : is the combination of two or
more firms in successive stages of
production
that often involve buyer and seller
relationship. This form of merger
stabilizeand production and offer more control
supply
of these critical areas. ( merger between Mc
Donald's and Philips petroleum )
 Product extension : merger occurs when
acquiring and acquired company have related
production or distribution activities but do not
have products that compete directly with each
other. ( merger between western publishing
( children's books) and Mattel ( toy company ) .
 Product extension merger is a combination of
two firms producing the same product but
selling them in different geographic market.
Major advantage of these mergers is that firms
can economically combine its management
skills, production and marketing with acquired
firms. (The acquisition of Mobilink Telecom Inc.
by Broadcom is a example of product
extension merger ). ( Broadcom deals in the
manufacturing Bluetooth personal area network
hardware systems and chips for IEEE 802.11b
wireless LAN. Mobilink Telecom Inc. deals in
the manufacturing of product designs meant
for handsets that are equipped with the Global
System for Mobile Communications technology)
 Market merger : A market
extension merger takes place between two
extension
companies that deal in the same products but
in separate markets. The main purpose of the
market extension merger is to make sure that
the merging companies can get access to a
bigger market and that ensures a bigger client
base. (Acquisition of Eagle Bancshares Inc by
the RBC Centura )
 Diversified activity merger : this is a
conglomerate merger involving consolidation
of two unrelated firms. (Philip Morris's
acquisition of Miller Brewing)
 Outsourcing
Global outsourcing is enabling business without
barriers in a borderless world. Outsourcing is no
longer just a short term quick-fix to achieve cost
reduction. Global outsourcing uses a blend of onsite,
offshore and nearshore outsourcing solutions to
achieve strategic business objectives for
the outsourcing company.
 International franchising 
It is a strategic way to reduce dependence on
domestic demand and grow new, future revenue and
profit centers worldwide. Extending a brand globally
through franchising involves low risk, requires
minimal investment, and offers a huge upside
potential for scaling capabilities.
 Contract manufacturing
A contract manufacturer ("CM") is a manufacturer
that contracts with a firm for components or
products. It is a form of outsourcing. A contract
manufacturer performing packaging operations is
called copacker or a contract packager.

 Strategic Alliance
strategic alliance (also see strategic partnership) is
an agreement between two or more parties to pursue
a set of agreed upon objectives needed while
remaining independent organizations. A strategic
alliance will usually fall short of a legal partnership
entity, agency, or corporate affiliate relationship.
 Lack of
informat
Attitude ion
of Lack of
entrepre
neur network

Politic Lack of
a l
barrier finance
Barriers to
international
trade

Human
resource Tariff
barrier barriers

Cultural Non tariff

barrier barriers
Technica
l
barrier
 BARRIERS TO INTERNATIONAL TRADE
 Attitude of entrepreneur : when an
entrepreneur has negative mindset that foreign
market is unknown to him and he might find it
difficult to set up his business in new country
will prove to be a major barrier for
international trade.
 Lack of information : as entrepreneur is new
entrant in international market he is unaware
about the market conditions in host country
and taste and preference of customers which
may lead to issues in terms of acceptance and
locating product in market.
 Lack of network influences : network with
established business companies makes it easy
for the entrepreneur in new market but if the
entrepreneur has no contacts in foreign
country then it will be difficult for
entrepreneur fro
m
required permission to establishing business in
country.
initi : as international business
 Financing problems
al financial institutions may be
involves huge risk
reluctant in terms of providing required
stag
finance to entrepreneurs.
e

of
 Tariff barriers : tariff means duty levied by
the government on imports. Imposing tariff
raises the price of imported goods making
them less attractive to consumers and protects
makers of comparable domestic products and
services.
 Non tariff barriers : theobstacles to
are
imports other than tariffs such as
testing,
certification, or bureaucratic hurdles that have
effect of restricting imports. These are
administrative measures that are imposed by a
domestic government to discriminate against
foreign goods and in favour of home goods.
 Technical barriers : basically refers to before a
country's goods enters into foreign market it has to
go through certain test for authentication. In US
before food products from others is marketed in US
it will be tested for checking bacteria content in
food item for safety of general public, which is
good for safety of host country but may prove to be
a major barrier to home country exporting
product.
 Political barrier : in few country their exist
abundant
scenario opportunity
in country for business
will but political
be instable such as
kidnappings, bombings, violent against business
and employees which proves to be major question
mark in terms of future success of business.
 Human resource : presence of labour unions,
hostile management unions relations, strike,
increase coat of labour in foreign country may
prove it difficult for entrepreneur to establish
business in foreign market.
 Cultural barriers : as entrepreneur is new
entrant in host country he may not be aware
about language, education, tradition, religion,
values of citizens which will make it difficult
for the entrepreneur to understand mindset,
taste and preference of customer in market.
ONGC Videsh Limited – Working globally for the Energy Security
of India
ONGC Videsh has stake in 39 oil and gas projects in 19 Countries, viz. Azerbaijan
(2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects),
Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya
(1 project), Mozambique (1 Project), Myanmar (6 projects), Namibia (1 project),
New Zealand (1 Project), Russia (3 projects), South Sudan (2 projects), Syria (2
projects), UAE (1 project), Venezuela (2 projects), and Vietnam (2 projects).
ONGC Videsh adopts a balanced portfolio approach and maintains a
combination of producing, discovered, exploration and pipeline assets.
Currently, ONGC Videsh has oil and gas production from 14 Assets, 4 Assets
where hydrocarbons have been discovered and are at various stages of
development, 18 Assets are under various stages of Exploration and 3 projects
are pipeline projects.
ONGC Videsh has developed strong partnership alliance with a host of IOCs and
NOCs including ExxonMobil, British Petroleum, Shell, ENI, Total, Repsol, Equinor,
Chevron, Petrobras, Sodeco, Socar, Rosneft, ADNOC, Posco International,
Kazmunaigaz (KMG), Petro Vietnam, CNPC, Sinopec, PDVSA, Petronas and
Ecopetrol.
Dhirubhai Ambani (1932-2002) started out
humbly by selling traditional snacks to
religious pilgrims. His business soon
grew, and he expanded and diversified,
eventually building India's largest private
company, Reliance Industries. Reliance has
interests in telecommunications, power
generation, information technology, consumer
goods, and logistics. Ambani's sons now run
Reliance and are some of India's wealthiest
people: Mukesh Ambani, 57, is worth over
$18.6 billion and Anil Ambana, 55, is worth
an estimated $5.1 billion.
Jehangir Ratanji Dadabhoy Tata or JRD Tata (1904-
1993) was born in Paris to Indian and French parents. He
was trained as an aviator in Europe and later became
India's first commercial airline pilot. Working for the
family business, TATA group, he set out on his own and
built TATA airlines, which ultimately became the modern
Air India. By the time of his death, TATA owned nearly
100 different businesses across many industries. Notably,
his automobile venture, Tata Motors (TTM), produces
economical automobiles that nearly all working Indians
can afford to own. JRD Tata is descended from Jamshetji
Tata who founded the TATA group of companies in the
mid-1800s.
Nagavara Ramarao Narayana Murthy, age
68, co-founded Indian IT giant Infosys (INFY)
with an initial investment of 10,000 rupees, or
just a few hundred dollars in today's money. He
is often referred to as the father of the Indian IT
industry, serving as CEO of Infosys from 1981
until 2002, and then its chairman until 2011.
Infosys currently has a market capitalization of
around $40 billion
Azim Premji, 69, is worth an estimated $15.3
billion and is the chairman of Wipro
Industries (WIT), a diversified software and
technology company that many have compared
to Microsoft. Premji is sometimes referred to
as India's Bill Gates as a result. 
Lakshmi Niwas Mittal, 64, began his career
working for his father's steel business. He later
set out on his own due to family infighting and
created what is now one of the largest
steelmakers in the world, ArcelorMittal (MT),
which has a market capitalization of $16 billion.
Mittal himself is worth nearly $17 billion.
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