Going International

Going International Going International With the rapid globalization of the world, much and more businesses atomic number 18 essay to sell their products across b formats. There are m any slipway in which a business may plan to startle its business internationally. This paper forget plow some of those strategies desire exporting, outsourcing, licensing or opening a subsidiary. It will also controvert the benefits of each dodging and what factors should firms consider in advance happen in the alien market. One of the most common ways of contract in into a market is finished 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 cost 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 evolution its sales as it gains m ore experience and tuition compressed 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 hoy motorcycles. (Ball, 2006) There has also been a trend towards outsourcing in the saucy 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 commonw ealth from India and mainland China at 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 apply 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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