International Market Entry Strategies

International Business Management: Entry Modes into Foreign Markets — Revision Sheet

1. 📌 Essentials

• Export: Selling goods/services abroad; main entry mode.
• Direct export: Producer sells to foreign buyer; full control.
• Indirect export: Uses intermediaries; lower risk, less control.
• Organizational structures: Dependents (departments, subsidiaries) vs. Independents (distributors, agents).
• présentative office: Non-trading, prospecting, informational role.
• Commercial office: Operational support, logistics, sales.
• Branch: Part of parent company, no legal personality.
• Subsidiary: Independent legal entity, fully controlled.
• Storage abroad: Ensures supply, often in free zones.
• Legal liability: Branch liable as part of parent; subsidiary responsible for its obligations.

2. 🧩 Key Structures & Components

• Export Department — manages export activities within the company.
• Distributors — buy and resell products, assume legal risk.
• Agents — represent producer, earn commissions, no stock.
• Représentative Office — non-trading, prospecting, info-gathering.
• Commercial Office — supports logistics, sales, after-sales.
• Branch — operational extension, no separate legal entity.
• Subsidiary — autonomous legal entity, majority owned.
• Storage Facilities — stocks abroad, often in free zones.
• Free Zones — duty-free zones for storage and logistics.

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