When Businesses Cross International Borders: Strategic Alliances and Their Alternatives

By Harvey S. James Jr.; Murray Weidenbaum | Go to book overview

2
Marketing Abroad Directly

The presence of an emerging worldwide market underscores the necessity for firms to develop strategies that will enable them to compete successfully on a global scale. Although many strategies are available for firms to pursue -- cooperative contractual relationships, strategic alliances and joint ventures, and the establishment or acquisition of overseas production facilities -- the need for globally oriented firms to get their products into foreign markets is paramount.

For many firms, selling products directly to foreign markets represents a practical and attractive response. This is especially true for small or mid-size companies faced with competition in their domestic markets by foreign businesses and possessing limited financial resources for fullscale global operations.

There are primarily two ways in which an established firm can directly market its products in foreign nations without setting up local production facilities or strategic relationships with foreign businesses: exporting and turnkey operations. Exporting involves the transfer of goods from the firm's domestic production facilities to foreign customers. Turnkey operations, on the other hand, typically consist of the construction of plants by the domestic firm in

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When Businesses Cross International Borders: Strategic Alliances and Their Alternatives
Table of contents

Table of contents

  • THE WASHINGTON PAPERS ii
  • Title Page iii
  • Contents v
  • Foreword vii
  • About the Authors xi
  • Acknowledgments xiii
  • Summary xv
  • 1 - Competing in a Global Marketplace 1
  • 2 - Marketing Abroad Directly 16
  • 3 - Cooperative Contractual Arrangements 28
  • 4 - Building and Buying Overseas Operations 48
  • 5 - Strategic Alliances Without Equity Investment 61
  • 6 - Strategic Alliances with Equity Investment 83
  • 7 - Summary and Conclusions 102
  • Notes 110
  • Index 127
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