Ch. 5 Global Marketing Student Version

Ch. 5 Global Marketing Student Version - Global Marketing...

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© 2010 Robert H. Smith School of Business University of Maryland Global Marketing Ch. 5 Professor Whitney Fall 2010
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© 2010 Robert H. Smith School of Business University of Maryland Identify the Countries
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© 2010 Robert H. Smith School of Business University of Maryland Global Marketing Questions What are our options in selling abroad? How difficult is global marketing? What are the potential risks and returns?
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© 2010 Robert H. Smith School of Business University of Maryland Why “Go Global”? Earn additional profits Leverage a unique product or technological advantage Possess exclusive market information Saturated domestic markets Excess capacity Utilize “economies of scale”
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© 2010 Robert H. Smith School of Business University of Maryland Risk Levels for Global Entry Low risk/low return High risk/ high return Risk Return Export Licensing C ontract M anu- facturing Joint Venture Direct Invest- ment
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© 2010 Robert H. Smith School of Business University of Maryland Entering the Global Marketplace Licensing Legal process allowing use of manufacturing/patents/knowledge Contract Manufacturing Private-label manufacturing by a foreign country Joint Venture Domestic firm buys/joins a foreign company to create new entity Export Sell domestically produced products to buyers in other countries Direct Investment Active ownership of a foreign company/manufacturing facility
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© 2010 Robert H. Smith School of Business
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Ch. 5 Global Marketing Student Version - Global Marketing...

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