Types of entry in overseas market

Types of entry in overseas Market

1. Direct Exporting
2. Indirect Exporting
3. Contract Manufacturing
4. Joint Venture 
5. Overseas Production

Important Factor for overseas entry

1. Firm Size 

Normally a large scale firm enter in international trade. The small scale company normally goes for the export because the setting a overseas operation requires a huge investment.

2. Mode of entry Available 

Some countries allow restricted access to foreign firm. for example some countries does not allow capital repatriation and the capital amount will remain invested . This is not an attractive option for foreign investor and this restriction also carry many risk especially risk . 

3. Skilled labor Availability 

The skilled labor availability in the country. The many huge scale industry require a lot of skilled labor . for example if a airline want to start an overseas production it would not be possible for it to start its operation in non developed countries like Afghanistan or Somalia because the required skill level would not be available in those countries.

4. Risk Assessment  

Assessment of different risk factor. There are a range of risk associated with international business these risk vary from the political risk to financial risk. Different entry options carry different risks some carries high political risk and some high financial risks. for example in case of export there are minimum risk .

5. Quality Issue 

The branded company also consider the quality control issue. Especially huge brands are more interested in brand image and quality issues. The many entry option like third party involvement in production under licensing arrangement may create quality issues.