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Terms in this set (122)

-reaching markets either yourself or with the use of an intermediary located in foreign market

-ADV: more profit bc you're doing it yourself, greater control, able to leverage experience curve effects
-DISADV: requires more expertise, mgmt time and fin resources

-ACTIVITIES: so much to do so firms usually use intermediaries
1. identify market opportunity (4 p's, ensuring payment)
2. distributing the product (shipping the produce -- insurance, freight forwarding, clearing customs, getting it into the hands of buyers -- warehousing, transporting to retail)
3. providing after-sales support

-DIRECT EXPORT OPTIONS: buy OR make it decision...look at cost/benefits
1. Ind't Distributor: no direct cost to exporter, takes margin on selling price of products,distribute it yourself
-BUY: less per-unit profit, useful if low volume

2. Mktg Subsidiaries: initial and FC to establish/maintain subsidiary.
-manager, sales manager, clerical staff, warehouse operation
-MAKE: more per-unit profit, useful if high volume

COOPERATING FOR EXPORT: companies competing against each other in their domestic market may unit to address export markets
-govts may encourage/support cooperation
-SMEs may cooperate for export
*small companies

-internet has greatly increases the ability of firms to export directly, especially beneficial for SMEs.
-SMEs (firms fewer than 500 employees)=98% the the number of U.S. exporters in 2013
-useful for intermediaries

-Pacific World Corporation: manufacturer of artificial fingernails and nail care products (IE. Nailene)
--> exports=25% of sales
--> high quality distributors/agents (intermediaries like FedEx and internat'l banks) is key to their internet'l success