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Export

In: Business and Management

Submitted By rain78drops
Words 3014
Pages 13
EXPORT STRATEGIES AVAILABLE TO FIRMS INTERNATIONALISING
This report gives an insight into exporting, its definitions and other international business transactions, it goes on discussing the different strategies available to a firm internationalizing for the first time, and these include both direct and indirect strategies available, and provides examples of firms that use export strategies. It also gives the advantages and disadvantages of such strategies. At the end of the report it provides a conclusion and recommendations to what strategies a firm can adopt depending on the situation.
2.0 INTRODUCTION AND BACKGROUND
The most conventional forms of international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade.
Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country.
Importing is the buying of products abroad and bringing them to the home market.
Countertrade is a business transaction where all or partial payments are made in kind rather than cash.
Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008).
Among the organizations arrangements for exporting are Indirect Exporting, Direct Exporting and the establishment of a Company- Owned Subsidiary.
Direct exporting is accomplished by contracting with intermediaries located abroad, and involves using Manufacturing Representatives or Sales Agents, Foreign Distributor/Importer, Overseas Retailers, Central Trade Offices...

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