4.6 International marketing (HL)

Ways

Effects

Exporting: Sells its products directly to overseas buyers.

Eliminates the need to set up a business abroad, but exporters can be exposed to the uncertainties of fluctuations in exchange rates.

Direct investment: Setting up overseas production and distribution facilities.

Wide distribution channel, but high costs.

E-commerce: Conducting business via the Internet.

This an effective way to reduce the costs and risks of international marketing but requires qualified employees and materials.

External growth method

Opportunities

Threats

Increased customer base

Legal issues- copyright, trademark, and patent

Economies of scale

Political issues

Increased brand recognition

Social and demographic issues

Spread risks

Economic issues

Extend the product life cycle

Gain more profit