IBUS2301 Study Guide - Final Guide: Gross Fixed Capital Formation, Developing Country, Switching Barriers
Document Summary
Opportunities for smaller firms to benefit from international trade: can achieve economies of scale, thereby lowering unit costs, can be very profitable and opportunities are available in almost every county and industry. Export when: domestic markets become saturated or have excess production capacity, opportunities come to them. Export strategy - steps to increase the probability of exporting success: hire export consultant to identify opportunities and navigate paperwork and regulations, focus on one or just few markets. Learn what is required to succeed before moving on: small scale entry to reduce costs of any subsequent failure. Recognise time and managerial commitment involved in building export sales and hire additional personnel to oversee: build strong and enduring relationships with local distributors and customers, hire local personnel to establish company presence, retain option of local production. Assess the following variables: objectives of the firm, types of products to sell, size and resources available, previous experience or subsidiary in country.
