Entering Foreign Markets – Admission/Application Essay Example
The paper "Entering Foreign Markets" is a worthy example of a marketing admission essay.
Exporting can be done directly or indirectly. Through indirect exportation, companies work independently through intermediaries. This saves the company a lot of money because it does not require an overseas network or organization. The company also incurs very little risks because the intermediaries themselves bring their knowledge and expertise to the operating company, hence the seller makes very few mistakes. On the other hand, direct exporting implies that the company sets up an exporting unit within the established structures that will in turn set up an international network. This will give the company more presence in the international market.
This is working with international companies to market or produce products and services. A local company may partner with an international company to market or sell. This is the only formal strategy that a business is allowed to venture into the international market. For a company to work with a foreign market, it should be aware of the laws that govern that country and its business. This is because most different laws may infringe on the rights of other business people especially if they are foreigners in the country. However, international markets have greater control than local companies and may take a larger portion of profits.
A local company can expand its operations by establishing its own operations in a foreign country. This is most appropriate for large corporations because of large capital requirements. When a company penetrates to set up a business in a foreign country, it is subjected to the rules of that country. Generally, the main purpose of the direct investment is to enable the company to gain control over the future decisions. This can only be accomplished by either gaining minority interest or majority interest. Even though direct investment incurs low utility costs and high government incentives, is subject to decline in markets, devalued currencies and change in government policies.
The best way
Exporting is the best way to venture into the international market because it is very simple. There is little obstruction as opposed to a joint venture and direct investment, thus saving the company its finances.