Exporting Is An Entry Strategy Involving The Sale Of Products

1042 Words Nov 1st, 2016 5 Pages
Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements. Among the organizations arrangements for exporting are Indirect Exporting, Direct Exporting and the establishment of a Company- Owned Subsidiary. Direct exporting is accomplished by contracting with intermediaries located abroad, and involves using Manufacturing Representatives or Sales Agents, Foreign Distributor/Importer, Overseas Retailers, Central Trade Offices and Trade Companies. Indirect exporting is accomplished by contracting with intermediaries located in the firms’ home markets, and involves using a domestic intermediary such as Export Management Companies (EMC) and Export Trading Company (ETC) and overseas intermediaries such as Licensing, Franchising and Contracting, and other intermediaries such as Piggy Back Market, Export Merchants, and Corporate Presence.
Company-owned subsidiary is where a firm enters a foreign market by establishing an…

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