WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 12

by | Dec 30, 2011 | International Business, Market Entry | 109 comments

Entering international markets part 12
CONTRACT MANUFACTURING: a firm contracts with a local manufacturer to produce its products to the firm’s specifications. An example of this is when Gates Rubber licensed one of its belt technologies to General Tire’s Chilean plant. Or the case of Peace Frogs T-shirts who exports T-shirts directly to some countries, but in Spain per capita income is lower, competition from domestic producers is stronger, and tariffs are high, so they license a Barcelona-based company the rights to manufacture their product.
ADVANTAGEOUS WHEN: risks of investing in a foreign country are high, when there are stringent import barriers, when high political risks exist, lack of raw materials at home.

PROS:
1) Frequently importation of like products is halted but the firm contracting manufacturing would earn a royalty on the now locally produced product, would have belts made to their specifications without the expense of investing in production facilities, and competition of other importers would be eliminated;
2) Generates employment and foreign exchange for the host county.
3) Usually easy access to entry as host country knows laws, politics, customs, etc.; can begin to build a relationship with the host country.

CONS:
1) Could lose control of quality; possible low quality workers;
2) Not in control of pricing or marketing;
3) No equity in the subcontractor.
4) Your competition may be a customer!

[tags] Market Entry, International business consultant, international business videos, what is international marketing, china podcast, international business podcast, global podcast, international marketing, international marketing tools, strategy, market research, international research, planning, international business, off shoring, outsourcing, Global business, marketing, business planning, marketing abroad, strategic consulting [/tags]

109 Comments

  2. Betturkey
    Betturkey on June 30, 2024 at 1:22 am

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  3. Bycasino
    Bycasino on June 30, 2024 at 2:10 am

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  4. Bycasino
    Bycasino on June 30, 2024 at 2:10 am

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  5. Bycasino
    Bycasino on June 30, 2024 at 2:13 am

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  8. ByCasino
    ByCasino on July 4, 2024 at 9:35 pm

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  9. ByCasino
    ByCasino on July 4, 2024 at 9:35 pm

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  10. Fixbet
    Fixbet on July 9, 2024 at 1:42 pm

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  12. Fixbet
    Fixbet on July 9, 2024 at 10:32 pm

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  13. Onwin
    Onwin on July 9, 2024 at 10:56 pm

    Nice article inspiring thanks. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  14. Tipobet
    Tipobet on July 14, 2024 at 10:41 am

    Thank you for great article. Hello Administ .Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  15. Tipobet
    Tipobet on July 14, 2024 at 10:41 am

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  16. Casibom
    Casibom on July 14, 2024 at 10:41 am

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  17. Tipobet
    Tipobet on July 14, 2024 at 10:42 am

    Thank you for great content. Hello Administ. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  18. Tipobet
    Tipobet on July 14, 2024 at 10:44 am

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  19. Tipobet
    Tipobet on July 14, 2024 at 10:46 am

    Nice article inspiring thanks. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  20. Tipobet
    Tipobet on July 14, 2024 at 10:58 am

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  24. Bycasino
    Bycasino on July 14, 2024 at 6:15 pm

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  27. onwin
    onwin on July 15, 2024 at 8:32 pm

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  28. Bycasino
    Bycasino on July 16, 2024 at 10:55 am

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  29. Bycasino
    Bycasino on July 16, 2024 at 10:55 am

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  30. onwin
    onwin on July 16, 2024 at 10:57 am

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  31. onwin
    onwin on July 16, 2024 at 10:58 am

    Thank you for great article. Hello Administ .Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  32. By Casino
    By Casino on July 16, 2024 at 11:01 am

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  34. Hacklink
    Hacklink on July 16, 2024 at 11:10 am

    Thank you for great information. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  35. onwin
    onwin on July 16, 2024 at 1:20 pm

    Great post thank you. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  36. onwin
    onwin on July 16, 2024 at 1:49 pm

    Great post thank you. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  39. Starzbet
    Starzbet on July 18, 2024 at 11:42 pm

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  41. Starzbet
    Starzbet on July 18, 2024 at 11:43 pm

    Thank you for great information. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  42. Starzbet
    Starzbet on July 18, 2024 at 11:43 pm

    Thank you great posting about essential oil. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  43. Starzbet
    Starzbet on July 18, 2024 at 11:43 pm

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  44. Xslot
    Xslot on July 18, 2024 at 11:44 pm

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  45. Xslot
    Xslot on July 18, 2024 at 11:44 pm

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  46. Xslot
    Xslot on July 18, 2024 at 11:45 pm

    Thank you for great content. Hello Administ. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  49. onwin
    onwin on July 22, 2024 at 3:05 am

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  51. Xslot
    Xslot on July 22, 2024 at 4:22 am

    Thank you great posting about essential oil. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  53. vds sunucu
    vds sunucu on July 22, 2024 at 4:26 am

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  55. Starzbet
    Starzbet on July 22, 2024 at 4:35 am

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  58. Sahabet
    Sahabet on July 29, 2024 at 5:23 pm

    Thank you for great information. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  59. Sahabet
    Sahabet on July 29, 2024 at 5:23 pm

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  61. ByCasino
    ByCasino on July 29, 2024 at 7:00 pm

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  62. hacklink
    hacklink on July 29, 2024 at 7:00 pm

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  63. ByCasino
    ByCasino on July 29, 2024 at 7:00 pm

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  65. ByCasino
    ByCasino on July 29, 2024 at 7:01 pm

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  66. Bycasino
    Bycasino on July 29, 2024 at 7:13 pm

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  67. By Casino
    By Casino on July 29, 2024 at 7:13 pm

    I really love to read such an excellent article. Helpful article. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  69. By Casino
    By Casino on July 29, 2024 at 7:14 pm

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  70. Onwin
    Onwin on August 1, 2024 at 6:34 pm

    Thank you for great information. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  72. Sahabet
    Sahabet on August 1, 2024 at 10:35 pm

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  73. Sahabet
    Sahabet on August 1, 2024 at 10:36 pm

    Nice article inspiring thanks. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  74. Sahabet
    Sahabet on August 1, 2024 at 10:40 pm

    Thank you for great article. Hello Administ .Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  75. ByCasino
    ByCasino on August 1, 2024 at 11:33 pm

    Nice article inspiring thanks. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  77. By Casino
    By Casino on August 1, 2024 at 11:44 pm

    Thank you great posting about essential oil. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  79. Starzbet
    Starzbet on August 2, 2024 at 4:59 am

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  80. Onwin
    Onwin on August 4, 2024 at 10:33 pm

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  84. Impeple
    Impeple on August 27, 2024 at 10:35 am

    priligy dosage Comparative validation of the SP6 antibody to Ki67 in breast cancer

  85. Bahis siteleri
    Bahis siteleri on August 31, 2024 at 10:06 pm

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  87. 国产线播放免费人成视频播放
    国产线播放免费人成视频播放 on September 5, 2024 at 12:32 am

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  89. Sahabet
    Sahabet on September 8, 2024 at 6:27 am

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  90. bycasino giris
    bycasino giris on September 8, 2024 at 6:52 am

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  97. Casibom
    Casibom on September 9, 2024 at 8:23 am

    Thank you for great content. Hello Administ. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  98. Casibom
    Casibom on September 9, 2024 at 8:23 am

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  99. Casibom giriş
    Casibom giriş on September 9, 2024 at 8:24 am

    Thank you for content. Area rugs and online home decor store. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  100. Casibom
    Casibom on September 9, 2024 at 8:26 am

    Thank you for great information. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  103. Tipobet
    Tipobet on September 9, 2024 at 2:31 pm

    Everything is very open and very clear explanation of issues. was truly information.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  106. wbahis
    wbahis on September 18, 2024 at 4:29 pm

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  108. wbahis
    wbahis on September 21, 2024 at 9:37 pm

    Nice article inspiring thanks. Hello Administ . Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut

  109. wbahis
    wbahis on September 24, 2024 at 2:11 am

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.Seo Paketi Skype: By_uMuT@KRaLBenim.Com -_- live:by_umut