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1、TaskSixInternationalMarketsEntryModeSelectionIAlternativesOfEntryModesWhenacompanychoosestheentrymodeforaforeignmarket,ithasthreealternativesforselection,exportingentrymode,contractualentrymodeandinvestmententrymode.1.ExportEntryModeConditionsFavoringExportingtheimportpolicyinthetarge
2、tcountryisliberalexportersarenotexperiencedinmarketinginforeignmarketsandfinditdifficulttoobtainthedistributionchannels.exportersfounditcostlytobuildplantsintargetcountrybecausethelaborcostsinmanycountriesareveryhighsomecountriespresenthighpoliticalrisksIndirectExportIndirectexporting
3、meansthatthecompanysellsitsproductstointermediarieswhowillselltheproductoverseas.AdvantagesandDisadvantagesofIndirectExportThemanufacturercansellitsproducttoadistributorwithlittleinvestmentwithouthavingtolearnmuchabouttheinternationalmarketlackofcontroloverthemarketsofitsproducts,whic
4、hmayresultinlosingsalesandalossofgoodwillDirectExportingCompaniesengagingindirectexportinghavetheirownexportingexpertiseSuchcompanieshavemorecontroloverthemarketingmixinthetargetmarketDisadvantagesofDirectExportCompanieshavetocarrythecostoftheirexportdepartmentstaffandthoseinvolvedins
5、electingandmonitoringthefreightforwarders,shippinglines,insurers,marketingresearchers,andadvertisingcompaniesCooperativeExportingInthistypeofexportmode,afirmjoinswithotherstoeffectivelymarketacomplementaryproductprogramtolargerbuyers.----LookatMini-Case6.1PiggybackInthistypeofentrymod
6、e,theinexperiencedcompany,the“rider”,dealswithalargercompany,the“carrier”,whichoperatesinsomeforeignmarketsandiswillingtoactonbehalfoftheriderwhowantstoexporttothosemarkets.SkillTraining6.1MansionToysCo.,Ltd.isasmalltoymanufacturer,specializinginthedesignandproductionofhandicrafts,all
7、kindsofplushtoysandshortplushtoys.Itsproductsfeaturenewproductdesignsandarepopularwithconsumersandthecompanyenjoysahighreputationinhomemarket.Afterseveralyearsofdevelopment,theenterprisehaddevelopedintoalarge-scaletoymanufacturer.Toexploretheforeignmarket,companiesdecidedtoexporttoEur
8、opean