What do you have to consider when entering a new market?
institutional arrangement by which a firm gets its products, technologies, human skills, or other resources into a market
What are the three types of entry mode?
exporting, importing, countertrade
What is the most common method of buying and selling goods internationally?
exporting and importing
What are the three main reasons why companies export?
Expand sales (domestic is saturated, lower fixed costs)
Diversify sales (offset slow sales)
Gain experience (low cost, low risk way of starting international business)
What is the Four Step Model to developing an export strategy?
Identify a Potential Market
Match Needs to Abilities
In the Four step model to developing an export strategy, what step seeks a market with potential demand for your product?
1. Identify a Potential Market
What should beginner in exporting do in the first step of the export strategy model?
focus on one or only a few markets
seek expert advice on regulations, processes, and special issues related to the target market
In the Four step model to developing an export strategy, which step decides if you are capable of satisfying the target market's needs?
2. Match Needs to Abilities
In the Four step model to developing an export strategy, which step focuses on the initial contact with the target market? What is it's focus?
3. Initiate Meetings
focus on building trust and cooperative climate
In the Four step model to developing an export strategy, which step has the company's human, financial, and physical resources working in the target market? How long should objectives be projected for?
4. Commit Resources
3 - 5 years
Entrepreneurs and small/medium sized firms use _____ that specialize in getting products from one market into another; while large companies usually perform all of their export activities themselves
_____ is the practice by which a company sells its products directly to buyers in a target market
When exporting to foreign markets, what are the two methods of involvement?