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Export

This document discusses various export modes and intermediate entry modes for international business. It outlines contract manufacturing as an intermediate entry mode where a local manufacturer produces goods, allowing low-risk market entry without investment or financing risks but making transfer of production knowledge and quality control difficult. It notes advantages of using contract manufacturing include avoiding financial and currency risks while gaining a local made image, but disadvantages involve difficulty transferring know-how and controlling manufacturing without extensive support.

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Kazi Mohasin
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36 views1 page

Export

This document discusses various export modes and intermediate entry modes for international business. It outlines contract manufacturing as an intermediate entry mode where a local manufacturer produces goods, allowing low-risk market entry without investment or financing risks but making transfer of production knowledge and quality control difficult. It notes advantages of using contract manufacturing include avoiding financial and currency risks while gaining a local made image, but disadvantages involve difficulty transferring know-how and controlling manufacturing without extensive support.

Uploaded by

Kazi Mohasin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Export

Indirect

Direct

Cooperative export modes

Intermediate entry modes

Contract Manufacturing

Advantage
Low risks market entry
No local investment
Possible to avoid financing and currency risks
Local made image which may give advantage
Possible to control over marketing, sales and after sales

Disadvantage
Transfer of production know-how is difficult
Only possible if reliable and satisfactory manufacturer found
Need to provide extensively technical support to manufacturer staf
Difficult to achieve control over manufacturing

Licensing

Franchising

Joint Venture / Strategic alliances

Management Contracting

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