Introduction to the
International Trade
Operations
➢Business methods background
➢The current political and legal status of the Czech
Republic in foreign trade Radka Bauerová
International Trade Operations
28. 2. 2023
Content of the
presentation
1. Business methods
2. Classification of business methods
3. Specification of factors influencing the choice of
business methods
4. External trade relations of the Czech Republic
5. The current political and legal status of the Czech
Republic in foreign trade
BUSINESS METHODS
The globalization of the world economy coupled with mature and saturated home
markets mean that international activity is a major management issue for most large
retailers today (Rafiq, 2014).
➢ The retailer is moving into a different business environment
➢ The retailer needs to make a long-term commitment of a substantial amount of resources in order
to establish the brand in the foreign market
➢ Investing abroad will eventually require a significant internal reorganisation of the company
Therefore, it is important to use appropriate business methods to internationalize traders. Each business method of internationalisation
presents its own advantages and disadvantages as regards cost and funding of new investment, how quickly the retailers wants or needs
to establish itself abroad and the risk factors involved. (Bhatia, 2008)
Nowadays, all types of retailers (luxury goods and specialist retailers, fast-moving consumer goods, fashion) are active in international
retailing activities.
However, the move from purely domestic retailer to international retailer is a significant step for
these reasons (Bhatia, 2008):
TYPES OF BUSINESS METHODS
Exporting Licensing product
brand
Licensing process Agents Management
contract
Franchising Strategic alliance Joint venture Acquisition Establish
subsidiary abroad
CLASSIFICATION OF BUSINESS METHODS
Source: adapted from Bhatia, 2008
Business method Trade operations Method is useful for/when
Exporting Receives order from abroad; sends product abroad Premium brands from high-class retailer; easier with website
Licensing product brand Sells brand through another store in foreign country Recognised brand in niche or undeveloped markets
Licensing process Allows another retailer to use store brand or format
Service element usually makes this method inappropriate for
retailing
Agents Uses an individual or company to represent its interests Cost of alliances is too high or market potential is limited
Management contract
Manages a business for another company; it receives a fee
plus a percentage of profit
Hotel sector; in newly developing regions; where ownership
restricted to national firms
Franchising Allows another business to operate under its name Fast food; cosmetics; hotels; fashion products
Strategic alliance
Has partnership with another retailer or distributor to work
together
Entry into some markets for political or cultural reasons
Joint venture Setting up jointly owned subsidiary to develop new market
Host country´s laws regulate ownership or require indigenous
partner
Acquisition
Buys existing retail business. May convert to own format or
keep existing brand
Quick entry to local markets; useful where there are significant
restrictions on market competition or store development
Establish subsidiary abroad The company has an ownership interest in the business. Organic growth (used by Tesco in Eastern Europe)
Business methods are usually explained in terms of useful, cost, risk and market growth. However, for the
purposes of this subject, we will focus on trade operations and usefulness of methods in retailing.
Figure 1: Business methods of internationalisation in retailing
FDI
FDI
FDI
SPECIFICATION OF FACTORS INFLUENCING THE CHOICE OF
BUSINESS METHODS
Global retailers carefully plan their international operations.
Before entering a new market they do a feasibility study and then design the best strategy for market
entry.
Different international retailers have entered foreign markets at different points of time.
The business methods that global retailers take to entry a market depends on various factors such as
(Mukherjee and Patel, 2005; Rafiq, 2014):
➢ Cost, control, uniqueness of the format
➢ Financial strength of the firm
➢ Local market condition
➢ Existing regulation governing retail trade
➢ Characteristics of the supply chain
➢ Availability of infrastructure facilities
➢ Consumer demand patterns
➢ Presence of domestic organised retailers
➢ Barriers to foreign investments in allied sectors such as real
estate
Source: Mukherjee and Patel, 2005
Figure 2: Non-Asian Retailers Regional
Presence
Foreign Direct Investment in Retailing
Despite the fact that FDI brings a number of benefits to an emerging countries, it is
mostly limited (as was presented in examples at the previous slide) and business methods
need to be adapted to the location.
Impact of foreign direct investment in retailing on developing countries (Mukherjee and Patel,
2005):
➢ Increased the speed of development of modern formats
➢ Improved productivity and efficiency of the retail sector
➢ Enhanced sourcing
➢ Improved quality of employment (no negative impact of employment if the economy is growing)
➢ Encouraged investment in supply chain
➢ Led to integration of suppliers, logistic service and retailers (reduction in the number of
intermediaries)
➢ Linked local suppliers, farmers, manufacturers to global markets
➢ Low cost global retailers are likely to lower prices
➢ Consumers are assured of product quality, better services and shopping experience
Most Preferred Entry Routes of Global Retailers
MERGERS AND ACQUISITIONS
It allows bypassing barriers related to consumer preferences in merged company, which means that
company A + company B = company A, where company B is merged into company A (Gaughan,
2017). Acquisition means gaining control over the company´s activities.
➢ Example in retailing: In 1997, Wal-Mart entered German market through acquisition of the local
chain Wertkauf. Later it purchased another local chain Interspar. By purchasing these two domestic
chains, Wal-Mart wanted to gain significant market share and at the same time reduce its
competitors. Wal-Mart also entered by this way these markets: UK (Asda), Canada (Woolco), Asia
(TOPS), and Latin America (Disco). (Mukherjee and Patel, 2005)
The most preferred entry routes of global retailers are ranked from the most used method
the following (Mukherjee and Patel, 2005): 1. Mergers and acquisitions
2. Joint ventures
3. Franchising
4. Wholesale cash-and-carry
Most Preferred Entry Routes of Global Retailers
JOINT VENTURES
It allows to circumvent the consumer preferences related barriers in collaboration with the local firm.
➢ Example in retailing: In 1991, Wal-Mart first set up operations in Mexico by opening Sam´s Club
with 50-50 joint venture with Cifra, one of Mexico´s largest retailers. It now operates in Mexico
under the name of several entities.
WHOLESALE CASH-AND-CARRY
A cash and carry wholesaler has a warehouse set up with a cash and carry wholesale business (products
are sold for cash and typically without any sort of delivery service).
➢ Example in retailing: Metro AG of Germany and Shoprite Checkers of South Africa have entered
India through wholesale cash-and-carry operations.
FRANCHISING
It allows firms to expand without investing their own capital, is based on local expertise and enables
firms to circumvent local oppositions and regulations.
➢ Example in retailing: McDonald´s have entered into many countries through this mode.
Barriers to National and International Expansion
Barriers to National and International Expansion
A large number of retail chains are expanding their operations beyond national
boundaries, however, only few of them are able to sustain those operations and make
profits. In some countries, domestic legislation controls the types of entry methods
employed by retailers (Rafiq, 2014). Why are they doing this?
Multinational retailers face several barriers and difficulties in overseas markets, which includes
these ones:
➢ Barriers to entry and operation (only faced by foreign retailers)
➢ Domestic regulation related barriers (both foreign and domestic retailers)
➢ Other barriers (both foreign and domestic retailers)
Examples of failure in retailing:
- Carrefour had to withdraw from the US due to steep competition from Wal-Mart
- Wal-Mart had to leave Hong Kong after two years of its entry in 1994 and withdraw from
Indonesia following the 1997-98 riots when its Jakarta store was looted and torched.
- Boots (UK-based health and beauty product retailer) had to sell its Dutch store to Royal Ahold
in spite of having significant profits at home.
Barriers to Entry and Operation
Retail trade relies heavily on the freedom to establish a commercial presence in the foreign country. Hence, any
barrier which limits the ability of firms to establish commercial presence affects international retailers. In many
countries there are significant market access restrictions on foreign investments.
Examples in retailing:
- In Sri Lanka, foreign investment is not permitted in retail trade with a capital investment of less than US
$1million.
- In Malaysia, in case of acquisitions by foreign investors, 70 per cent equity can be held either by Malaysians
or foreign investors as long as the 30 per cent “Bhumiputra” (Malays and other ethnic groups) equity
condition is met.
- China has allowed entry of foreign players in retailing through joint ventures, there are several requirements
relating to minimum wholesale volume, minimum imports and exports, minimum registered capital etc.
Typically market access restrictions (Mukherjee and Patel, 2005):
➢ Limiting foreign equity ownership to specific levels
➢ Limitation on the purchase or rental or real estate
➢ Economic needs tests for service suppliers
➢ Requirement to form a joint venture with local suppliers
Domestic Regulation Related and Other Barriers
Other barriers include these ones:
➢ Strong local competition
➢ Unfamiliar customers taste
➢ Low purchasing power of consumers
➢ Customers preference for certain domestic
formats
➢ Unstable political situation
➢ Poor quality of infrastructure
Many countries have imposed regulations which prevent large retailers from expanding their
operations and benefiting from economies of scale. These restrictions prevent anti-competitive
practices and/or protection to the local small retailers.
Typically domestic market access restrictions (Mukherjee and Patel, 2005):
➢ Restrictions on the number of retailers
➢ Restrictions on the size and location of outlets
➢ Restrictions on the outlets and zoning regulations
Example in retailing:
-In Germany, restrictions on shop opening timings and on retailers´ pricing policies, under the fair
trading and anti-trust laws, is making it difficult even for larger players like Wall-Mart to operate in
that market.
Summary of National and International Expansion Barriers
➢ Strong local competition
➢ Unfamiliar customers taste
➢ Low purchasing power of
consumers
➢ Customers preference for
certain domestic formats
➢ Unstable political situation
➢ Poor quality of
infrastructure
➢ Restrictions on geographical
location and zoning regulation
➢ Limitation on size and number
of retail outlets
➢ Restrictions on shop opening
timings
➢ Restrictions on pricing,
advertising, promoting and
selling certain products
➢ FDI restriction
➢ Joint venture/local
incorporation requirement
➢ Minimum capital
requirement
➢ Local sourcing requirement
Common Barriers to
Entry and Operation:
Common Barriers Due to
Domestic Regulation:
➢ What other barriers can affect international expansion?
➢ Why is knowledge of these restrictions important in trade operations?
Common Other Barriers:
BUSINESS METHODS AND EXPANSION BARRIERS
- a task to practice
WORK IN PAIRS
Each team draws a Czech company selling a specific
product and a market that the company wants to
enter with its product.
Task processing procedure:
➢ Conduct a market analysis and try to identify all
possible barriers to entry
➢ Decide which business method of market entry is
most appropriate and justify your claim
Time: 20 minutes + 20 minutes to present team
results and vote on the best team
Business methods: exporting, licensing product brand, licensing process, agents, management contract, franchising, strategic alliance,
joint venture, acquisition, establish subsidiary abroad (FDI)
The best group will receive a one bonus point!
The specification of major markets – United States
The US economy received a boost from fiscal policy in 2018, with a
combination of tax cuts and spending increases, which fuelled increased
demand and caused a temporary acceleration of growth. Yet fiscal policy
also led to bottlenecks and wage acceleration, given that the economy was
already at full employment. The Federal Reserve responded by raising
interest rates, a process which is likely to continue in 2019. Ultimately,
tight monetary policy combined with trade wars and a potential reversal
of fiscal policy will cause the economy to slow down and, possibly, go into
recession within two to three years. With weak investment and exports,
consumer spending has fuelled growth. Yet spending has mostly risen faster
than income, as households dipped into savings and took on more debt. This
situation is not sustainable indefinitely. Unless there is a significant
acceleration in wages, it is likely that growth in consumer spending will
slow down in 2019. Moreover, after tariffs have been fully implemented, this
too could negatively affect consumer spending. (Global Powers of Retailing,
2019)
Figure 3: The illustration map of
the United States of America
Source: Global Powers of Retailing, 2019
The specification of major markets – Eurozone
In 2018, after very strong growth, the Eurozone economy decelerated
considerably owing to higher energy prices, a high valued euro, trade
uncertainty, and weakening global demand. Yet the Eurozone is not at
risk of recession. Inflation remains low owing to high unemployment in
many Eurozone countries. This is likely to result in continued easy
monetary policy. In addition, fiscal policy is easing in several countries,
energy prices are declining, and the euro is falling in value. Thus, growth
is likely to stabilize at a slower pace than in 2017. The biggest risk to the
Eurozone is political. That is, high unemployment has fuelled a populist
backlash against European integration. In elections, non-traditional
parties have increased their share of the vote, making it more difficult to
form coalitions and to govern. The risk of conflict between the EU and
member countries has risen, weakening its ability to respond to future
crises. As of late 2018, a conflict was already under way between Italy and
the EU over the size of Italy’s planned budget deficit. The outcome of this
dispute remains uncertain. (Global Powers of Retailing, 2019)
Figure 4: The illustration map of the
Eurozone
Source: Global Powers of Retailing, 2019
The specification of major markets – China
China’s economy decelerated in 2018, despite an easing of monetary
policy meant to offset the potential impact of worsening trade relations
with the US. The deceleration was due to weak export demand (itself
the result of an overvalued currency); and a weakening of fixed asset
investment, partly owing to excess capacity, and partly owing to
trade concerns. Longer term, onerous demographics are boosting labour
costs and weakening consumer spending growth. A debate now rages
within China as to the future direction of policy, especially in an
environment where globalization is threatened. China could go down the
road towards market liberalization and freer trade with countries other
than the US or it could turn inward and focus on state-run companies
and a state managed economy. Meanwhile, the government has sought to
fill the gap left by the US pivoting away from Asia. It is seeking to lead a
free trade regime within the Asia Pacific region, and has used its vast
surplus to fund infrastructure investment in friendly countries through
the Belt and Road Initiative. (Global Powers of Retailing, 2019)
Figure 5: The illustration map of
China
Source: Global Powers of Retailing, 2019
The specification of major markets – Japan
Japan’s economy faces a conundrum. For some time, growth has
stemmed disproportionately from exports. Yet with a slowdown in
the global economy, a threat to China-based supply chains and with
the protectionist policies of the US government, Japan cannot
depend on exports exclusively for growth. Although the
government has encouraged a shift toward growth based on
domestic demand, its efforts have not yet been successful. A tight
labour market has generated higher wages, but consumer spending
has not responded commensurately. The government intends to
boost the national sales tax in 2019 in order to assure future fiscal
integrity. Yet the last time this tax was raised, it led to a recession.
The central bank has indicated that it will not tighten monetary
policy until the tax is implemented, but it has shied away from
further easing of policy, despite the failure to bring inflation to the
central bank’s target rate. (Global Powers of Retailing, 2019)
Figure 6: The illustration map of
Japan
Source: Global Powers of Retailing, 2019
The specification of Czech economy
Source: CUZK, 2019
Despite the turmoil on the financial markets and the upward trend
towards protectionism, the global economy managed to
deceleration the growth rate to 3 % from 3.6% in 2019.
Nevertheless, the Czech economy thrived, where the focus of
growth shifted to domestic demand. However, favourable
developments over the past five years have already exhausted
labour market reserves. Unemployment rates have fallen to the
lowest level ever, and the lack of free labour has become a major
problem. As expected, the upward pressure on wage growth
and the tighter monetary policy followed.
In five steps, the CNB increased its basic interest rate from
0.5% to 1.75% in 2018. Foreign trade plays a key role in
economic development. The share of exports of goods
and services in GDP reaches 80% and rising in the long term.
(Deloitte, 2019)
Figure 7: The map of the Czech
Republic
EXTERNAL TRADE RELATIONS OF THE CZECH REPUBLIC
External economic relations are determining for the Czech Republic, because it is a small, very open
economy and export is one of the basic conditions of economic growth. The Czech Republic
is a historically important exporter and is dependent on imports of certain fuels and raw materials.
The accession of the Czech Republic to the EU represented a major impetus for the development
of foreign-trade relations with developed European economies, especially Germany. (Mulačová et al.,
2013)
According to preliminary data, the trade
balance of goods at current prices ended in
May 2019 with a surplus of CZK 24.4
billion, which was by CZK 17.2 billion
higher year-on-year level (Figure 8).
Figure 8: External trade balance in the national concept
Source: CSO, 2019
➢ The following figure shows an increase
in exports and its excess over imports
caused by the opening of Western
European markets through the trade
balance.
Territorial Structure of Foreign Trade of the Czech Republic
Figure 9: Export and Import of the Czech Republic by
territorial structure (in CZK million)
Source: CSO, 2019
➢ The following figure shows the overall trade balance (red columns), the trade balance from the
perspective of EU countries and non-EU countries.
Czech export and import focus mainly on economically developed countries and the European
market. Countries with the largest exports include Germany, Slovakia, Poland, France and the United
Kingdom. Imports are dominated by Germany, China and Poland.
From the territorial point of view, the biggest
trade deficit is in China (-85 016 CZK million),
Germany (62 338 CZK million), Slovakia (38
559 CZK million) and the United Kingdom (30
049 CZK million). The Czech Republic trades
mainly with neighbour countries. In 2018,
the share of neighbour countries accounted
for 51% of total exports and 41% of
imports. (CSO, 2019)
Foreign Trade Commodity Structure of the Czech Republic
Machines and means of transport have a
dominant position in Czech exports to the EU
market. They account for 56% of total exports.
Year-on-year level, their exports to the EU-28
increased by 138.5 billion crowns. The main
export item remains road vehicles. (CSO,
2019)
Source: CSO, 2019
➢ The following figure shows external trade
balance by CZ-CPA.
The current structure of Czech foreign trade is limited mainly to processed products. The basis of
export are motor vehicles, machinery and equipment, fabricated metal products and electrical
equipment. Passive balance is achieved most in crude petroleum, natural gas, basic metals and
chemicals and chemical products. (CSO, 2019)
Figure 10: Commodity structure of exports and
imports in the Czech Republic (1st quarter 2019)
THE CURRENT POLITICAL AND LEGAL STATUS OF THE CZECH REPUBLIC
IN FOREIGN TRADE
The Czech Republic is influencing its external relations trade policy through contractual and autonomous instruments. Czech
trade policy is based on liberalism, so active autonomous instruments prevail. Tools of trade policy of the Czech Republic are
divided as follows (Mulačová et al., 2013):
1. Contract Tools 2. Passive Autonomous Tools 3. Active Autonomous Tools
The contractual instruments are based on
multilateral contractual obligations
entered into by the Czech Government
resulting from membership in
international organizations and
membership in the EU. The basis of EU
trade policy is a common customs policy,
common rules on commodity and service
trade and its implementation. Bilateral
agreements are of limited importance to
EU membership
Example of bilateral agreements:
➢ Economic Cooperation Agreements
between the Czech Republic and India
(MPO,2019)
Passive market protection instruments
are regulated within the EU. These
instruments include, in particular, tariff
instruments in the form of customs.
Customs clearance takes place at
customs offices or in the customs area
throughout the EU and a JCD (Single
Administrative Document) form is
submitted and all necessary goods and
transport documents are attached.
Imports and exports in the Intrastat
system are kept in intra-EU trade.
Active instruments include various
export promotion measures and
assistance to exporters, including
subsidies that comply with WTO
rules. These instruments are defined
by the Export Strategy of the Czech
Republic and are coordinated by the
Ministry of Industry and Trade and
the institutions established for these
purposes.
Trade Policy of the Czech Republic
The Czech Republic, as a member country of the EU, applies a liberal trade policy. The country is a member
of most major international organizations and, in line with the World Trade Organization (WTO) objectives,
is an open economy removing barriers to free trade. It formulates its trade policy in accordance with the United
Nations (UN) resolutions and its UNCTAD Conference (Trade and Development Conference). The basic
objective is to promote the Czech Republic's economic interests abroad and to create conditions for the application
of Czech businesses in foreign markets (Mulačová et al., 2013). The primary responsibility for implementing UN
objective lies with the Ministry of Industry and Trade (MPO). The ministry is responsible for the management
of industry, construction, foreign and internal trade. Its activities are as follows (MPO, 2016):
➢ coordinates the preparation of legislation and implementation of European law within the competence of
the Ministry
➢ coordinates the Czech Republic's foreign trade policy in relation to individual states;
➢ ensures the negotiation of bilateral and multilateral trade and economic agreements, including commodity
agreements;
➢ implements trade and economic cooperation with the EC, EFTA, OECD, WTO and other international
organizations and integration groups;
➢ manages and carries out activities related to the application of the licensing regime for economic contacts
with foreign countries, assesses imports of dumped and dual-use products and takes measures to protect against
the import of such products;
Specialized Export Support Institutions in the Czech Republic
(Active Autonomous Tools)
The specialized institutions are shaped to support Czech exports:
-CzechTrade (the institution is subordinate to the Ministry of Industry and Trade)
-Czech Export Bank
-Export Guarantee and Insurance Corporation (EGAP)
-CzechInvest (the institution is subordinate to the Ministry of Industry and Trade)
-CzechTourism
CzechTrade
It is primarily an export support agency whose aim is to support the competitiveness of Czech exporters abroad.
It provides extensive information on foreign markets and advisory and assistance services. It has an extensive
network of foreign and regional offices. CzechTrade services make it easier for companies to choose suitable
export territories, shorten the time they enter the market and support activities aimed at further development of
the company abroad. (CzechTrade, 2019)
The services of the Czech Trade agency:
➢ information service
➢ export advice
➢ export education
➢ Actions for Exporters
➢ Design for export
➢ Exporter Directory
➢ Export Client Centre
➢ Chances for successful export (individual services
free of charge)
Specialized Export Support Institutions in the Czech Republic
Czech Export Bank (ČEB)
It is a specialised, directly and indirectly state-owned banking institution. The bank is subject to supervision by
the Ministry of Finance of the Czech Republic in terms of its activities in the field of preferential financing, and
subject to the supervision of the Czech National Bank in all matters related to its banking license. ČEB's mission
is to support Czech exports and the renown of the Czech Republic as a well-established international exporter, and
thus promote the overall competitiveness of Czech products throughout the world. (ČEB, 2019)
Main products for Czech exporter are:
➢ Credits and Trade Finance Products
➢ Treasury Products
Export Guarantee and Insurance Corporation (EGAP)
It is a credit insurance corporation insuring credit connected with exports of goods and services from the Czech
Republic against political and commercial risks uninsurable by commercial insurance. The Czech Republic
exercises its shareholder rights through the Czech Ministry of Finance. (EGAP,2019)
Main services offer for Czech exporter are:
➢ Risk of non-payment directly for exporters and
financing bank
➢ Risk of devaluation of the investment
➢ Risk of cancellation of the contract by the importer
➢ Insurance of bank guarantees
Specialized Export Support Institutions in the Czech Republic
CzechInvest
The Investment and Business Development Agency (CzechInvest) is a state contributory organization subordinate
to the Ministry of Industry and Trade of the Czech Republic. The agency arranges for the Czech Republic both
domestic and foreign investments in the areas of manufacturing, business support services and technology centres.
It also supports small, medium-sized and innovative start-up companies, the country’s business infrastructure, and
innovation. Main CzechInvest´ services are (CzechInvest, 2019):
➢ assistance during implementation of investment projects
➢ consulting services for foreign investors entering the Czech market
➢ Aftercare services for foreign investors that are already operating on the Czech market
➢ administration of a business-property database
➢ support for suppliers – administration of a database of Czech supplier firms
➢ mediation of state investment aid and contact with state administrative bodies and local authorities
➢ partnering with entities in the research and development and academic spheres
➢ assistance for the development of innovative start-up firms by means of the agency’s programs
The current key sectors for CzechInvest are Aerospace, Automotive, Business Services, Electrical Engineering
and Electronics, Advanced Engineering, ICT and Data Centres, Life Sciences and Nanotechnology. (CzechInvest,
2019)
Specialized Export Support Institutions in the Czech Republic
CzechTourism
The CzechTourism is a state contributory organization founded by the Ministry of Regional Development of the
Czech Republic.
The basic objective of CzechTourism is to promote the Czech Republic as a travel destination abroad and in
the Czech Republic. To achieve this goal, CzechTourism, in coordination with the Ministry of Regional
Development of the Czech Republic, fulfils the following main tasks (CzechTourism, 2019):
➢ Coordination of tourism activities
➢ Destination marketing
➢ Media presentation of the Czech Republic, tourism industry and CzechTourism agency
➢ Information support for tourism
➢ Research and educational activities
➢ Economic and administrative management of the Agency
CzechTourism also operates tourist information centres. These centres provide a comprehensive information
service on all tourist regions in the Czech Republic in foreign language.
SUMMARY
➢ Retailers can use to move from purely domestic retailer to international retailer these
business methods: exporting, licensing product brand, licensing process, agents,
management contract, franchising, strategic alliance, joint venture, acquisition
and establish subsidiary abroad (FDI).
➢ The choice of business methods depends on various factors, e.g. cost, control,
uniqueness of the format, financial strength of the firm, local market condition,
characteristics of the supply chain, presence of domestic organised retailers,
barriers to foreign investments in allied sectors.
➢ The most preferred entry routes of global retailers are these methods: mergers
and acquisitions, joint ventures, franchising, wholesale cash-and-carry.
➢ The most known barriers in international expansion are FDI restriction, minimum
capital requirement, joint venture requirement, local sourcing requirement, limitation
on size and number of retail outlets, restrictions on pricing, advertising, promoting
and selling certain products, strong local competition, unfamiliar customers taste, low
purchasing power of consumers or poor quality of infrastructure.
➢ Good knowledge of the target market economy is very important in the
internationalization of business operations.
➢ The internationalization of Czech trade is supported by various state organizations, for
example CzechTrade, Czech Export Bank, Export Guarantee and Insurance
Corporation, CzechInvest and CzechTourism.
THE LITERATURE REVIEW SOURCES
1. BHATIA, S.C., 2008. Retail Management. New Delhi: Atlantic Publishers & Dist. ISBN 978-81-269-0981-0.
2. GAUGHAN, P.A., 2017. Mergers, Acquisitions, and Corporate Restructurings. 6th ed. New Jersey: John Wiley & Sons. ISBN 978-1-119-
38073-3.
3. MUKHERJEE, A. and N. PATEL, 2005. FDI in Retail Sector. New Delhi: Academic Foundation. ISBN 978-81-7188-480-3.
4. MULAČOVÁ, V. and P. MULAČ, 2013. Obchodní podnikání ve 21. století. Praha: Grada. ISBN 978-80-247-4780-4.
5. RAFIQ, M., 2014. Principles of Retailing. 2nd ed. London: Macmillan International Higher Education. ISBN 978-1-137-35451-8.
6. Web portal ČEB [online] [14.07.2019]. Available at: https://www.ceb.cz/en/about-us/history/.
7. Web portal CUZK [online] [13.07.2019]. Available at: https://geoportal.cuzk.cz/mapycuzk/#wmcid=1059.
8. Web portal Czech Statistical Office [online] [12.07.2019]. Available at: https://www.czso.cz/csu/czso/cri/zahranicni-obchod-kveten-2019.
9. Web portal CzechInvest [online] [14.07.2019]. Available at: https://www.czechinvest.org/en/About-CzechInvest/About-Us.
10. Web portal CzechTourism [online] [14.07.2019]. Available at: https://www.czechtourism.cz/.
11. Web portal CzechTrade [online] [14.07.2019]. Available at: https://www.czechtrade.cz/sluzby.
12. Web portal Deloitte, 2019 [online] [11.07.2019]. Available at: https://www2.deloitte.com/cz/cs/pages/deloitte-analytics/articles/vyhled-
ceske-ekonomiky-na-rok-2019.html.
13. Web portal EGAP [online] [14.07.2019]. Available at: https://www.egap.cz/en/profile.
14. Web portal Global Powers of Retailing 2019 [online] [10.07.2019]. Available at:
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consumer-Business/cons-global-powers-retailing-2019.pdf
15. Web portal MPO [online] [13.07.2019]. Available at: https://www.mpo.cz/cz/rozcestnik/ministerstvo/o-ministerstvu/pusobnost-
ministerstva/pusobnost-ministerstva--1926/.
16. Web portal MPO [online] [14.07.2019]. Available at: https://www.mpo.cz/cz/rozcestnik/pro-media/tiskove-zpravy/cr-a-indie-podepsaly-
novou-hospodarskou-dohodu--75279/.
THANK YOU FOR YOUR ATTENTION