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Essay / Research Paper Abstract
This 17 page paper looks at different aspects of international expansion. Using the example of an Asian clothing company the paper looks at the different ways of entering a new market, considers which country would be a good target and justifies this by examining market information. The paper then looks at how international cultural issues may impact and the way that currency exchange rate risks may be mitigated. The bibliography cites 12 sources.
Page Count:
17 pages (~225 words per page)
File: TS14_TEintxpan.rtf
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Unformatted sample text from the term paper:
have many choices. In this example we will consider a textile manufacturer that specialises in low cost mens clothes. Some choices may be more suited to this market and the
company than others. In looking at each choice that can be used for entry to a new market the strengths and
weaknesses may be examined along with other features that are associated with each entry strategy. The choices considered will be exporting, franchises, licensing, joint ventures, management contracts and wholly owned
subsidiaries. Exporting may be seen as the most straight forward way of expanding into another country or area. It involves the manufacturing
of the goods in the home country where the facilities already exist. This means that there is no need to find new premises or facilities in a new area. Therefore,
the capacity of the existing facilities will need to be capable of expansion. The advantage of this is the lack of additional facilities required and the retained control at the
existing plant. The problem with this method of expansion is that as an organic growth strategy it may be slow to yield results and it can also be costly.
Once goods are produced they need to be exported to the country concerned. This may be undertaken directly. For example, Zanussi produce goods
mostly in Italy, yet they access the whole of Europe. Zanussi export indirectly as they export to wholesalers and large chains who are responsible for selling their products (Thompson, 1998).
The well known soft toy manufacturer Ty Warner who was one of the founder manufacturers of the Beanie baby craze has the goods manufactured in only a few countries, which
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