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16 M. Fund. - Coggle Diagram
16 M. Fund.
Methods of Entering the Global Market
Contract Manufacturing
Private-label manufacturing by a foreign company
Joint Venture
Domestic girl joins with a foreign firm to create a new entity
Licensing and Franchising
A legal process
Direct Investment
Active ownership - majority or controlling interest in a foreign firm
Exporting
Selling domestically produced products to buyers in another country
Reasons to go "Global"
Unique Advantage
Exclusive Market information to exploit
Additional profits
To achieve economies of scale
Product and Promotion Strategy Options
Product Invention
Create a new product or drastically change an existing one
Product Adaptation
Slightly alter to meet local conditions
One Product One Message
Global marketing standardization
Uniform branding
Message Adaptation
Maintain the same product but alter the message
Pricing Options
Selling Price
Customers willing to spend?
Cursomers able to spend?
Costs - Production
Costs - tariffs, taxes, insurance...
Other Pricing consideration
Exchange rates
depreciation
floating exchange rates
appreciation
Dumping
a form of price discrimination
creates serious problems in trade
Countertrade
fast growing way to conduct global business
all or part of the payment is in the form of other products or services
a form of barter