Question

A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company

Answer 1

A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The hardware manufacturer should establish it's own sales offices in foreign countries.

Explanation:

By establishing its own sales offices in foriegn countries, the benefits which come through are :

Expanding Brand Recognition : By opening a branch in a new country, a company has the opportunity to expand the reach of their brand.

• More Cost-Effective Production and Manufacturing : There are advantages to setting up a foreign subsidiary in another country where there may be a cost-effective manufacturing and production industry
• Access to Technical Skills / Regional Knowledge : Some foreign countries have greater access to advanced technology and are more adept with technical skills.
• Customer Service Centers : Multinational companies with established international customers may need to open a foreign branch office for customer service reasons, and will look for a business friendly location for that purpose.
• Part of a Global Expansion Plan : Some countries serve as an excellent base, enabling the foreign company to expand into the region.