Market Entry Methods Flashcards
1
Q
What are the barriers to world trade?
A
- Tariffs
- Quantitative restrictions
- Restrictive Practices
2
Q
What are the benefits of exporting?
A
- Easiest and cheapest route into a foreign market
- Exporters can concentrate production in a single location, giving economies of scale and consistency of product quality
3
Q
What are the 4 ways to indirect export?
A
- Trading companies/export houses
- Specialist export managers
- Complementary exporting (piggybanking)
- UK buying offices of foreign stores and governments
4
Q
What are direct exports?
A
When the producing organisation itself performs the export tasks rather than using an intermediary
5
Q
What is an overseas export agent?
A
A firm hired to effect a sales contract between the principal and a customer, and they then take a commission on sales
6
Q
What is a distributor/stockist?
A
Customers with preferential rights to buy and sell a range of a firm’s goods in a specific geographical area.
They earn profit, not commission
