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Ways of entering foreign markets
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Ways of entering foreign markets
1.
WAYS OF ENTERING FOREIGN
MARKETS
2.
MODES OF ENTRY
3.
Indirect Exporting • Domestic-based
export merchants • Domestic-based export agents • Cooperative organizations • Export-management committees Exporting through independent intermediaries
4.
Indirect Exporting 2 Advantages •
Less investment • Less risk
5.
Direct Exporting Handle their
own exports to gain higher potential returns
6.
Direct Exporting • Domestic-based
export department / divisions • Overseas sales branch / subsidiary • Travelling export sales representative • Foreign-based distributors / agents
7.
Licensing • Management contracts •
Contract Manufacturing • Franchising Issue license to a foreign company through
8.
Joint Ventures Sharing ownership
& control with foreign investors
9.
Direct Investment Advantages 4 large
markets Direct ownership (buy / build) • Securedcost (cheaper resources etc.) • Image – giving jobs • Building Relations • Independent policies • Assuredaccess to the market
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