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Friday, October 16, 2015

SCOPE OF INTERNATIONAL MARKETING - Part 3

SCOPE OF INTERNATIONAL MARKETING

International Marketing constitutes a large areas of businesses, first of them are Exports and Imports (International Trade), Contractual Agreements and Joint Ventures as discussed in Part 1& Part 2 SCOPE OF INTERNATIONAL MARKETING-  so hereunder in part 3, we will identify another five items of international marketing.

Manufacturing-owned: A company with long-term interest in a foreign market can establish manufacturing facilities outright. Factors such as trade barriers, differences in costs, government policies, etc. encourage the establishment of production facilities in foreign markets. Foreign manufacturing provides the company with a total control over quality and production.

Contract manufacturing: When a company enters into a contract with another company in a foreign country for the production assembles the products and canned product marketing with itself, it is known as contract manufacturing. Contract manufacturing has important advantages such as low risk, low cost and output.

Management contracting: Under a management contract supplier brings a skill set that will offer integrated service to customer without the risk and benefits of ownership.

Third country location: When there is no commercial transaction between two countries for various reasons, a company that wants to enter the market of another country, will operate from a third base country. For example,Taiwan’s entry into china through bases in Hong Kong.

Mergers and acquisitions (M & A): provide access to markets, distribution network, new technologies and patent rights. It also reduces the level of competition for companies that merge or be acquired.

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