Week 5 - Discussion 2.docx - Week 5 Discussion 2 Globalization and International Markets Choose two international strategies compare and contrast them

Week 5 - Discussion 2.docx - Week 5 Discussion 2...

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Week 5 - Discussion 2 Globalization and International Markets Choose two international strategies, compare and contrast them, and discuss why organizations may choose one strategy over another when expanding into the international market. According to Abraham (2012) two international strategies are exporting and marketing expansion. Exporting requires a company to become familiar with shipping and freight, insurance, and customs regulations while market expansion requires physical presence in a foreign market. According to Abraham (2012) “Market expansion is a way of ending dependence on a foreign distributor or importer, which doesn’t release any market information, and eliminating the markup it charges” (sec 11.2). Market expansion is creating jobs in a different
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Unformatted text preview: country for those in that region while exporting does not use the other counties resources such as employment. Some organizations may want to use market expansion rather than exporting to keep cost low by expanding to countries with low wage requirements. Exporting, on the other hand, can reduce the organizations profits because of the cost of learning a different business culture, shipping and freight, insurance, and regulations to different countries. Reference Abraham, S. C. (2012). Strategic management for organizations [Electronic version]. Retrieved from ...
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