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1. According to what Hollensen wrote in Global Marketing, a firm's choice of its entry mode for a given product/target country is the net result of several, often conflicting forces (p. 297). What are some of those forces? How do you anticipate the strength and direction of those forces as part of the decision-making process?
2. Why are marketing channels and intermediaries necessary in foreign markets? What is the most important function carried out by intermediaries? Why? Why do channel arrangements sometimes need to be modified over time?
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marketing channels and intermediaries are discussed in great detail in this solution.
1. According to what Hollensen wrote in Global Marketing, â??a firmâ??s choice of its entry mode for a given product/target country is the net result of several, often conflicting forcesâ? (p. 297). What are some of those forces? How do you anticipate the strength and direction of those forces as part of the decision-making process?
Some of these conflicting forces are trade barriers and tariffs, high transportation costs, and limited information about the locale. On the other hand there can be a relatively small demand, high cost of local production, and low political risks. These forces are conflicting because on one side high trade barriers increase the cost of importing the products but small demand makes it unproductive to produce there. Similarly, high cost of local production discourages local production but high transportation costs reduce the attractiveness of imports. Finally, low information about the locale discourages local production but low political ...
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