Indirect exporting
What does the company have to assess in order to start exporting?
It’s export readiness
The reason many companies choose direct exporting when wanting to enter forging markets?
Because trading between companies is international or global
What is it called when a company hands over production to a foreign company?
License production
How can companies sell their product directly to the end-users both domestically and in foreign markets?
Through a website
What are the most important criterias a company should consider when choosing a market entry strategy?
Risk, Control, Flexibility, and Resources
Indirect exporting could involve working with these three.
Trade exporter, export agents or piggybacking
Who manages the sales in the forigin market and sells the products in the companys name and at its expense and risk?
Sales agent
What is system franchising?
It is handing over an entire system or concept, with everything being agreed down to the smallest detail
What may a company invest in when establishing their own production facilities in a foreign market?
Its own warehouse or factories.
A company that wishes to maximize its influence and control over its distribution, while at the same time minimizing the risks, would choose what strategy?
E-commerce
What does a Danish trade exporter do?
A Danish trade exporter buys products directly from a Danish manufacturer, and the trade exporter resells them on international markets at his own expense.
A company that are represented on several international market will often use what? Based on the markets current or expected potential.
Penetration strategies
Who has the risk in a joint venture?
The risk is shared between the two companies.
What services cannot be transported across national borders?
Intangible services such as hotel and travel bookings.
A company that wishes to maximize its influence and control over its distribution and choose to bear both risk and cost of that itself, would chose what strategy?
Direct investment
What companies are usually using indirect exporting?
Companies with limited knowledge and resources to export.
What are the most widespread forms of direct exporting?
Trade importer, sales agent and dealer/distributer and the companys own salespersons or sale company/offiec
Which three levels does franchising involve when entering into in an agreement?
Either at product level, brand level or system level.
What does many costumers on the export market prefer their suppliers to have?
At least one physical point of sale or a showroom in the country they are exporting to.
In markets where there are problems with tariffs, import quatas and technical barriers to trade, what market entry strategy would often be used?
Licence production
What are the reasons that the use of indirect exports has been significantly declining?
Globalisation and technological development.
A sales company abroad may choose to establish one of three things?
Showroom, Sales office, Subsidiary
When the Danish tax authority SKAT collaborates on the system export of its tax system to Bosnia-Herzegovina it is called what?
Export collaboration
How does companies that are based on classic business models view e-commerce?
As an extra distribution channel.
What market entry strategy would Companies whose products or concepts are suitable for franchising use?
Licence production