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Role of import and export management strategies in foreign market entry and production methods. Case for foreign direct investments strategic alliances

Abdikarim Ibrahim Abdow Dr. Joyce Mokamba

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Abstract


Organizations, which can select the appropriate market entry and product line strategies, and measure their development program performance consistent with their strategy, will have greater chances of success, even in the face of tougher international competition and dramatic economic cycles. Any organization that aspires to go global faces various options from which to choose from as an expansion or market entry strategy. These options basically vary on costs involved, associated risks and degree of control expected. The objective of this paper is to evaluate the role of import and export management strategies in foreign market entry and production methods. Case for foreign direct investments strategic alliances. There are 2 main entry strategies used by firms enter into foreign markets, that is, domestic production and foreign production. Export management companies are used when companies establish dedicated firms to specially deal with export businesses. The special purpose export companies can act for a couple of companies or products. FDI refers to a composite bundle of capital stocks, know-how and technology which has a direct impact on the growth of a country. The paper confirms that there are very clear reasons for an entity to go global market whereas the advantages have been well enumerated. Going global requires capital muscle to make the expansion worthwhile. However, for such firms to deliver value to their stakeholders, they must be willing to soak in some risks and must therefore take time to calculate what strategy will be most appropriate to enter into any given market.


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DOI: http://dx.doi.org/10.15520/ijbm.vol6.iss4.71.pp49-54

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