Contents
The size of the company is a key condition for internationalization, perhaps the most important. There is a clear interrelationship between the size of the company and exporting activity, so artisans can use forms of entry adapted to the company profile.
When companies that do not reach that minimum size alone can compensate for it with other mechanisms: cooperation or association with other companies, use of foreign trade consultants or support in official intitutions.
There are numerous mechanisms that allow them to access support services for their international work that they could not have individually. The way chosen by the company to make its exit to foreign markets is a very relevant issue in the internationalization of the company.
The international dimension of the company is manifested in three modalities: 1) exports: direct and indirect 2) contractual cooperation agreements (licenses, concessions or agents and franchises 3) shareholder cooperation agreements through direct investment abroad, which can be carried out in two ways, through its own subsidiaries, whether commercial and / or productive, and through joint-venture.
The different forms of entry are characterized by certain interrelated variables: degree of control, commitment of resources, cost of exit, potential to gain knowledge, etc. Small companies have some outputs to compensate for their small size. For example, through business cooperation formulas. That is, by associating, in one way or another, with other companies: through export consortia, establishment of business clusters, agreements to share services. Through these associations, SMEs can share expenses to have services that they individually could not have.
The creation of export consortia is an interesting posibility for the Art&Crafts microenterprise. According to the Chambers of Commerce, a consortium "consists of the constitution of a unit of action in the form of a company with a legal status differentiated from its partners, in which they hold ownership of the company's shares."
The consortiums admit different modalities and characteristics but at its base is the association of a group of companies that decide to “share†a unit that manages their export activities. An added advantage of consortia is that they often receive support from public administrations.
Another possible form of association is business clusters. It is a group of companies and institutions that are geographically close, that work in a certain field and are united by common and complementary elements.
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Title:
Entry in international markets
Keywords
Globalisation
Author:
UMA
Languages:
English
You will learn how to design a global strategy for commercializing your craft goods
You will learn the necessity to association to reach global markets
You will learn the benefits of export consortia
Description:
The size of the company is a key condition for internationalization, perhaps the most important. There is a clear interrelationship between the size of the company and exporting activity, so artisans can use forms of entry adapted to the company profile.
When companies that do not reach that minimum size alone can compensate for it with other mechanisms: cooperation or association with other companies, use of foreign trade consultants or support in official intitutions.
There are numerous mechanisms that allow them to access support services for their international work that they could not have individually. The way chosen by the company to make its exit to foreign markets is a very relevant issue in the internationalization of the company.
The international dimension of the company is manifested in three modalities: 1) exports: direct and indirect 2) contractual cooperation agreements (licenses, concessions or agents and franchises 3) shareholder cooperation agreements through direct investment abroad, which can be carried out in two ways, through its own subsidiaries, whether commercial and / or productive, and through joint-venture.
The different forms of entry are characterized by certain interrelated variables: degree of control, commitment of resources, cost of exit, potential to gain knowledge, etc. Small companies have some outputs to compensate for their small size. For example, through business cooperation formulas. That is, by associating, in one way or another, with other companies: through export consortia, establishment of business clusters, agreements to share services. Through these associations, SMEs can share expenses to have services that they individually could not have.
The creation of export consortia is an interesting posibility for the Art&Crafts microenterprise. According to the Chambers of Commerce, a consortium "consists of the constitution of a unit of action in the form of a company with a legal status differentiated from its partners, in which they hold ownership of the company's shares."
The consortiums admit different modalities and characteristics but at its base is the association of a group of companies that decide to “share†a unit that manages their export activities. An added advantage of consortia is that they often receive support from public administrations.
Another possible form of association is business clusters. It is a group of companies and institutions that are geographically close, that work in a certain field and are united by common and complementary elements.