| Course | TGF-7130 Topics in Global Finance |
|---|---|
| Module | Module 3 |
| Paper type | Module 3 written assignment: managing international business |
| Length | About 560 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | MBA in Finance |
| Updated | October 2026 |
Free sample paper for TGF 7130 Module 3
A Distributor in Germany, a Plant in Mexico: Choosing Entry Modes by Market
Student Name
MBA in Finance, Thomas Edison State University
TGF-7130: Topics in Global Finance
Mentor Name
Month Day, Year
A Distributor in Germany, a Plant in Mexico: Choosing Entry Modes by Market
International Strategy
Griffin and Pustay (2015) describe international strategies that balance pressures for global efficiency against pressures for local responsiveness. Our filter media are the same everywhere, but water standards, certification and service expectations differ by country. Our strategy is to keep design and media production centralized in New Jersey, where our advantage lies, while adapting certification, packaging and service to each market.
Entry Mode Options
Griffin and Pustay describe entry modes that differ in control, risk and resource commitment: exporting, licensing, franchising, contract manufacturing, joint ventures and wholly owned subsidiaries. Hill et al. (1990) proposed that the choice depends on how much control a firm needs, the resources it must commit and the risk of losing its know-how, with modes that offer more control requiring more commitment.
| Mode | Control | Resource commitment | Risk to know-how |
|---|---|---|---|
| Indirect or direct exporting | Low to moderate | Low | Low |
| Licensing | Low | Low | High |
| Joint venture | Shared | Moderate | Moderate |
| Wholly owned subsidiary | High | High | Low |
Germany: Stay With Exporting, Add a Service Partner
Germany is a sales market, not a production site. Our distributor in Frankfurt has built 14 percent of our sales and holds the German certification for our drinking water filters. A sales subsidiary of our own would give more control but add about $1.2 million in yearly cost, but sales of $9 million do not yet justify it. The weak point is service: restaurants want installers who arrive the same day. Adding a service partner, a German installer under contract with our distributor, improves responsiveness without heavy commitment. If German sales pass $20 million, a sales subsidiary should be revisited, and the distributor's contract includes a clause allowing us to buy its filter business at a set multiple if we do.
Mexico: A Wholly Owned Plant
In Mexico we need production, and our filter media formulas are our most valuable know-how. Licensing a Mexican manufacturer or forming a joint venture would expose those formulas. Hill and colleagues' framework points to a wholly owned subsidiary when the risk to know-how is high. Henisz (2000) adds that where institutions offer weaker protection, partners have more room to appropriate a foreign firm's assets, which strengthens the case for ownership. We will set up a Mexican subsidiary operating under IMMEX, Mexico's program for manufacturing that imports inputs for export, which defers import duties and value added tax on materials used in products exported to the United States, a benefit our customs broker has confirmed applies to our cartridges.
Organizing and Controlling Operations
The Mexican plant will report to our vice president of operations, with a Mexican plant manager and two engineers from Edison on two-year assignments. Media will be made in Edison and shipped to Monterrey for assembly, so the formulas stay at home. Monthly reviews will compare the plant's quality, cost and delivery with Edison's, and the first year's targets will be set at Edison's own levels so that any gap is visible early.
Conclusion
Different markets call for different entry modes, and the right mode can change as a market matures. In Germany, a sales market where our distributor performs well, exporting with an added service partner balances responsiveness with low commitment. In Mexico, where we need production and must protect our know-how, a wholly owned plant gives the control we need.
References
Griffin, R. W., & Pustay, M. W. (2015). International business (8th ed.). Pearson.
Henisz, W. J. (2000). The institutional environment for multinational investment. Journal of Law, Economics, and Organization, 16(2), 334-364. https://doi.org/10.1093/jleo/16.2.334
Hill, C. W. L., Hwang, P., & Kim, W. C. (1990). An eclectic theory of the choice of international entry mode. Strategic Management Journal, 11(2), 117-128. https://doi.org/10.1002/smj.4250110204
What the TGF 7130 Module 3 instructions ask for
This written assignment covers managing international business. Expect to explain international strategy, compare entry modes on control, risk and commitment, recommend modes for specific markets and describe how operations abroad will be organized and controlled. Use a table to compare modes, explain each recommendation by the firm's needs in that market and support your reasoning with the textbook and research. Different markets may call for different answers. Consider whether different markets call for different modes, and explain what would make you change your choice later. Describe how operations abroad will be controlled. Use one table to compare the modes.
How this TGF 7130 Module 3 example is built
The paper sets out an international strategy balancing efficiency and local responsiveness. A table compares four entry modes on control, commitment and risk to know-how, with research on entry mode choice. Sections recommend exporting with a service partner for Germany and a wholly owned plant for Mexico, each with reasons and conditions for change. A section on organization and control and a conclusion follow. The German recommendation includes an option to buy the distributor's filter business at a set multiple, so the mode can change as sales grow. A short section explains how the Mexican plant will report and keep the formulas in New Jersey. Each recommendation names the condition that would change it. Germany and Mexico get different answers for stated reasons. Both choices rest on control, risk and commitment.
TGF 7130 Module 3 rubric: what earns full marks
Credit goes to correct use of strategy and entry mode concepts, recommendations that follow from the firm's needs, backing from Griffin and Pustay and from studies, and plain writing. Papers that choose different modes for different markets, with reasons, show strategic thinking. Linking protection of know-how to the choice of ownership demonstrates understanding of entry mode theory. Naming conditions under which the choice should be revisited shows judgment. Building a path from one mode to another, such as a purchase option on the distributor's business, shows strategic foresight. Explaining how know-how will be protected in practice, not only in theory, shows judgment. Clear tables help the mentor compare modes quickly.
TGF 7130 Module 3 help from the desk
Students lose points by recommending one entry mode for every market, by ignoring the risk to know-how or by describing modes without choosing. Others forget how operations will be controlled. Compare modes on control, commitment and risk. Choose for each market and explain why. Say what would change your choice. Describe reporting and control. Plan how you could move to a deeper entry mode if the market grows. Say what protects your know-how under each mode you consider, and why the protection is enough. Choose a mode market by market, Germany apart from Mexico. A free first sample on your own TGF-7130 entry mode assignment is available on request.
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TGF 7130 Module 3 questions, answered
Where can I find a free TGF 7130 Module 3 sample paper?
Entry modes chosen for Germany and Mexico by a filter maker are in the assignment above.
What are the main international entry modes?
Exporting, licensing, franchising, contract manufacturing, joint ventures and wholly owned subsidiaries.
When is a wholly owned subsidiary the best entry mode?
When the firm needs high control and the risk of losing know-how through partners is high.
What is IMMEX?
Mexico's program for manufacturing that imports inputs to produce goods for export, which defers import duties and value added tax on those inputs.
How do global efficiency and local responsiveness shape strategy?
Firms balance standardizing to cut cost against adapting to each market's needs.