UNIVERSITY OF MUMBAI

PROJECT REPORT ONSTUDY ON FOREIGN ENTRY ALTERNATIVES(STRATEGIC MANAGEMENT)

MASTERS OF COMMERCE(BUSINESS MANAGEMENT)SEMESTER 12014-15

SUBMITTED BYMR. SALMAN MAKDAROLL NO.:11

PROJECT GUIDEMS. POONAM KAKKAD

K.P.B HINDUJA COLLEGE OF COMMERCE315, NEW CHARNI ROAD, MUMBAI-400 004

M.COM (BUSINESS MANAGEMENT)1stSEMESTER

STUDY ON FOREIGN ENTRY ALTERNATIVES

SUBMITTED BYMR. SALMAN MAKDAROLL NO: 11

CERTIFICATEThis is to certify that Mr. Salman Makda of M.Com Business Management Semester- 1 [2014-2015] has successfully completed the Project on STUDY ON FROEIGN ENTRY ALTERNATIVES under the guidance of Ms. Poonam Kakkad.

Project Guide________________

Course Coordinator________________

Internal Examiner________________

External Examiner________________

Principal________________

Date: ______Place: Mumbai.

DECLARATION

I, Mr. Salman Makda student of M.Com Business Management, semester- 1 (2014-2015), hereby declare that I have completed the project on STUDY ON FOREIGN ENTRY ALTERNATIVES

The information submitted is true and original copy to the best of my knowledge.

SALMAN MAKDA

ACKNOWLEDGEMENT

I owe my special thanks to the Principle Dr. Chitra Natrajan and the Co-coordinator of M.com Dr. (Ms) Minu Madlani for giving me an opportunity for this project work. I would like to give my thanks to the Project Guide Ms.Poonam Kakkad for her guidance and kind assessment that she has provided me and the inspiration in valued guidance and ideas throughout the project. I am also thankful to the library staff of K. P. B. Hinduja College Of Commerce who co-operated with me and even all those seen and unseen hands and heads which helped me in the completion of this project.

INDEXCHAPTER NO.TOPICSPAGE NO.

TITLE PAGE

CERTIFICATE

DECLARATION

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

1INTRODUCTION1

1.1OBJECTIVES OF THEY STUDY1

1.2METHODS OF RESEARCH1

1.3SCOPE OF THE STUDY2

1.4LIMITATIONS2

1.5CHAPTERS SCHEMES2

2CONCEPTUAL FRAMEWORK3

3MODES OF ENTRY INTO FOREIGN MARKETS7

4EXI T STRATEGIES31

CONCLUSION36

BIBLIOGRAPHY37

EXECUTIVE SUMMARYFor developing countries, the textiles and clothing industries have traditionally been an important gateway to industrialization and increased exports. With the expiration of the Agreement on Textiles and Clothing, the quota system originally set up through the Multifibre Arrangement was phased out. This has important implications for the allocation of export-oriented production and is likely to affect in various ways a large number of developing countries that rely heavily on such exports. An institution originally intended to protect the interests of importing developed countries, the Multifibre Arrangement (MFA) imposed quanta restraints on textile and apparel imports.Governing trade policy in textiles and apparel for thirty years (1974-2004), the MFA was reformed on four occasions, with each revision attempting to accommodate the concerns expressed by the domestic industry lobbyists. Despite increasingly restrictive trade barriers, foreign competitors were able to take advantage of various opportunities to transship their goods, and consequently, continued to acquire an increasing share of the U.S. textile and apparel market. While the demise of the MFA forced countries to remove the quota restraints that were imposed under the multilateral framework, the U.S. continues to maintain considerable trade barriers against textile and apparel imports.This paper applies Douglas Norths theoretical framework concerning the process of institutional change in order analyze the principal forces underlying the MFAs multiple reforms, and to further explain the longevity of quantitative restraints on textiles and apparel.