Benefits and limitations of methods of entry

Question 1

benefits of exporting directly

Answer 1

1. this means company complete control over marketing of prod
2. agents and traders may represent several other companies so may not give priority to a new exporting business and its products
3. no commission taken by intermediaries so profit margin not reduced

Question 2

limitations of exporting directly

Answer 2

• the business may not have local agent/trader supporting them,may lack imp local knowledge
• exporting business has to handle the logistics of transporting & storing the prod & dealing w paperwork
• exporting directly means that the business will have to have dedicated sales personnel dealing w foreign buyers & comp management may have to travel abroad if contract justifies it