Options for International Entry

Business: Options for International Entry
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Options for International Entry
The popular options for international entry includes, combining exports and import manufacturing in foreign countries. Any multinational corporation structure affects its international activities and the type of industry the company is involved in. The first international option includes forming strategic alliances can complement the corporation activities at the international levels.
The second option requires corporation to choose between centralization versus decentralization in global markets. To enter in an international market corporation can export its products through local dealers and distributors in the foreign countries. This minimizes the organization structure. If this step becomes successful, a company can establish their sales company offices in other countries to reduce the activities of middlemen by controlling the market. If export is considered a primary revenue earner, the company can establish an export division to oversee foreign sales.
Alternatively, the company can establish manufacturing facilities apart from just the sales office in key countries. This means the company can add an international division with most of the functions being conducted in other countries not necessarily from its headquarters.
Similarly, the company can establish a local operating division or a small company in the host country to serve the market demands better. This means managerial functions is done locally then with time he main company acquire other related business by broadening the base of the local operation division. The subsidiary in the host country can develop a stronger regional presence by expanding investment. The company will eventually achieve greater autonomy as it becomes self-sufficient. This is because the operations in each country are managed separately as if each of them is a domestic company. Most company strategic entry to international market forms around geographical areas, product lines a...