ADMS 3960 Lecture Notes - Lecture 14: Cash Flow, Pro Forma, Freight Forwarder
24 Oct 2016
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Not only must an mne identify the goods/services it wants to sell, but must assess and explore market opportunities among many countries. Must also develop a production development strategy, a means of transportation, and interact with different cultures, banking systems, and market forces. Export and import activities are an extension of distribution strategy, they also include elements of product, promotion and pricing factors, and decisions. (cid:449)e (cid:449)ill focus o(cid:374) a co(cid:373)pa(cid:374)(cid:455)"s (cid:373)oti(cid:448)atio(cid:374)s for a(cid:374)d development of an export strategy. Requires less expertise, time, and capital, than other modes of entry. *ultimately, a decision to export is based on expectation of higher profit* In developing an export strategy, firms often consider: But the probability of exporting increases with size of company revenues. Export intensify (the percentage of total revenues generated by export) is not positively correlated with company size. Additional stumbling blocks (e. g. bribery, different interpretation of logos and slogans)
