INBS 347 Chapter Notes - Chapter 9: Offshoring, North American Free Trade Agreement, World Trade Organization
Document Summary
Proactive companies who have been successful in exporting will seek additional strategies to further expand into a market that has been entered. Many manufacturers have expanded their international marketing operations to include some type of production in foreign markets. Defensive (reactive) companies may also seek some level of alternative ways to expand in response to pressure from government, competition or nationalistic oriented buyers. China, with entry to the wto (2001) has joined the eu and nafta as an investment destination for purposes of market penetration and/or sourcing. Created assets, such as communications structure, marketing networks, attitudes and business culture, make investments in a country or economic integration area more (or less) attractive. Service and distribution/retailing companies as well as manufacturing companies increasingly are making investments in foreign countries. Outsourcing occurs when a company sends a portion of its operations to a third party; When it involves moving white-collar jobs to low-wage countries, it is sometimes called offshoring.
