Going International

Going International Going International With the rapid globalisation of the world, much and more businesses atomic number 18 nerve-wracking to sell their products across b dedicates. There are m any(prenominal) slipway in which a business may plan to watch over its business internationally. This paper forget plow some of those strategies resembling exporting, outsourcing, licensing or opening a subsidiary. It will also hash out the benefits of each dodging and what factors should firms consider in advance suffer in the alien market. One of the most common slipway of ingress into a market is by exporting. The biggest benefit of entering through this strategy is that it limits the losses. The maximum amount a come with can lose is the startup be and the value of the products in transaction. It allows the company to first test the viability of the unlike market by selling a small amount of its product. Gradually, it can outgrowth it s sales as it gains more experience and instruction pen up the market. For example, when Honda initially entered America, it was through exporting their heavy motorcycles. Gradually, it got market information that there is more demand for its sparkle motorcycles. Hence, it started exporting lighter motorcycles. (Ball, 2006) There has also been a trend towards outsourcing in the impertinent years.

Outsourcing refers to hiring labor and supplies from other parts of the world at a cheaper rate. The advances in telecommunicating and internet take reduced communication costs, which in return have allowed many companies to hire commonwealth from India and mainland China a! t lower rates. The key benefit of this strategy is that it reduces the costs of the company significantly. (Daft, 2011) Another way to enter foreign markets is through licensing. Under this strategy, the company (licensor) allows its intellectual property rights to be employ by another company (licensee), based in the foreign market it is looking to enter, for a fee. The licensor doesnt have any managerial and...If you want to get a near essay, order it on our website: BestEssayCheap.com

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