AEM_335_lecture_8 - PRINCIPAL PRODUCTION AND TECHNOLOGY...

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PRINCIPAL PRODUCTION AND TECHNOLOGY MARKETING OPTIONS EXPORT FROM THE U.S. Advantages: Maximum control over production Operate in a familiar environment May be more rapid or easier (i.e.,environmental safety review) Can target multiple countries Limited fixed commitments in market countries
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Costly – especially for transport of perishable goods Frequent impediments to imports, esp. of food products Need some form of local representative May provide incomplete protection for technology Due to shipping lags, difficult to respond rapidly to market conditions Disadvantages: Costs and sales in different currencies
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EXPORT FROM THIRD COUNTRY Advantages: Likely less costly than US production May have preferential access Assist access to multiple markets Disadvantages: Need knowledge of and representative in two countries Need to protect technology in two countries Costs, sales and profits all in different currencies
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AEM_335_lecture_8 - PRINCIPAL PRODUCTION AND TECHNOLOGY...

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