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International Trade and International Investment strategy.

Your proposal to expand into three countries was approved by the CEO. Now you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment? Choose one international trade and one international investment strategy to research and recommend. Research the advantages and disadvantages of your chosen strategies. Next, develop a set of recommendations for PM Company. These recommendations should be prioritized and should include time frames for their implementation. Accompanying the recommendations should be the rationale for the international market expansion strategy recommendation chosen and just a few bullet points on which international market expansion strategies would probably not be used by PM Company and why.
Since you will be presenting this to the CEO and senior management, use PowerPoint slides with notes. 7-9 SLIDES

Discuss strategies organizations can pursue for international market expansion.
Use effective communication techniques.
Use team and problem-solving skills to collaborate on a project.


Solution Preview

The stages of organization's evolution is first of all the organization will start exports of the goods and services because it involves low commitment of capital and in turn low risk and return. Export is the legitimate transportation of domestic or nationalized goods and services from a country intended for use or consumption rendered abroad. Exports can be any good that is shipped out of a government's border for commercial purposes.
Overall it involves low commitment of capital and in turn low risk and return. It is low risk, as it does not involve long-term capital investment in foreign location.

Then next step can be of joint venture or franchising/ licensing route. A joint venture (often abbreviated JV, and sometimes known by the older term joint adventure) is a strategic alliance between two or more parties to undertake economic activity together. The parties agree to create a new entity together by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship such as the Sony ...

Solution Summary

This solution looks at the stages of an organization's evolution and also the reasons for a joint venture. It also discusses other options for the company such as franchising. References used are included.