GEB 3375 Chapter Notes - Chapter 14: Pro Forma, Commercial Invoice
Document Summary
Characterized as low moderate or high control strategies. A firm must decide how much control, risk and resource commitment it desires before choosing an entry strategy. Exporting occurs when a firm creates products or services in one country and sells them to customers in another. Lowest risk and cost to the firm. If a company wants to export there are 3 major options: indirect exporting - when a firm uses an intermediary in the firm"s own country that takes care of all the export functions for the business. Usually a good idea if the firm has no previous exporting experience: direct exporting- uses an intermediary in the foreign country. They are usually in charge of the later value chain activities such as distribution and retail. If the firm is capable of skipping the domestic intermediary it will incur fewer costs: company owned foreign subsidiary- the firm is very involved with moving its products and services to the foreign consumer.
