- Companies that truly want to commit to exporting to a market form a subsidiary.
- Subsidiaries are usually formed after market success has been achieved by other methods.
- Subsidiaries offer the following advantages:
- Control over:
- Sales and ditribution
- Potentially highest profit margins
- A closer relationship to the overseas market
- Subsidiaries offer the following disadvantages:
- Greatest commitment
- Is upper management committed to opening a foreign subsidiary?
- Is upper management understand the risks and the resources required to open a foreign subsidiary?
- Does opening a subsidiary fit into your company's short, medium, and long-term goals?
- Greatest investment
- Human Resources
© 2004 John Michael Pierobon