Order Now

How Companies Have Entered the International Market

An important feature of the modern world economy is the work of its subjects in conditions of severe competition which is the result of the ongoing struggle for markets first of all. Therefore, any company that wishes to be engaged in international economic relations sets up the successful entry to the international marketplace which usually is filled up with offered goods and services as the primary goal.

A natural way of enter the international marketplace is the export. Occasional export is a passive type of participation in international trade, when the firm gets access to the international marketplace from time to time, on its own initiative or upon foreign orders. Active export occurs when the firm decides to expand the supply of products to specific market, but in any case, these products are produced in its own country and adapted to foreign markets.

There are several ways to organize a direct export which is another way to enter the international marketplace:

  • Export department or unit
  • Overseas sales department or subsidiary
  • Sales representatives
  • Foreign distributors or agents (Grand, 1995).

The best way to present a company’s products with direct or indirect export is participation in overseas exhibitions.

Licensing is the easiest way to take advantage of the international division of labor. Usually, the licensor for a fee offers the right to use their production and trade secrets, trademark or patent to foreign companies, and thus it’s possible at low risk to get access to foreign markets.

Joint venture (JV) is a very popular way to get access to the international marketplace in which the company shares the ownership and production control with a local company.

Last form of an access to the international marketplace is to create own assembly or manufacturing plants, i.e. to implement the direct investment (Schaffer, 2008).
Works Cited:

Grand, A. F. (1995). Fire standards in the international marketplace. P. 98.
Schaffer, R., Agusti, F., Earle, F. (2008). International Business Law and Its Environment. P. 530.