International marketing Exporting, Licensing and Franchising
Why Firms Go International
PROACTIVE Motivators
Profit
Unique products (competitive edge)- but may not be on global scale
Technological advantages but firms can copy
Exclusive information (through contacts) competitors catch up with time
Tax Benefit
Economies of scale (increased production globally = lower domestic)
REACTIVE Motivators
Competitive pressures (insufficient preparation = hasty entry/ quick withdrawal) and fear of domestic/foreign market
Overproduction (in recession provide domestic but once returned excess goods)
Declining domestic sales (may be in decline stage of cycle but good use in developing economies)
Excess capacity (unused equipment)
Saturated domestic markets (Sales decline)
Proximity to customers and ports (Physical US and Mexico) or (psychological UK and US Language )
R & D
High start up costs
Marketing......
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