Question

1. The reason exporting is preferred by such a large portion of companies engaging in the global marketplace is that most small and medium-sized enterprises (SMEs) prefer exporting as a relatively low commitment to get their product out globally. Discuss the steps managers can take to improve their firm’s export performance.

2. Explain how country differences, production technology, and production factors all affect the choice of where to locate production activities

Answer 1

1. Exporting is a very common mode for international entry for small and medium sczle enterprises. Joint venture, merger, aquisition and foreign direct investment may be out of reach due to economic limitations.

Managers can increase international presence by doing following thigs:

a. creating a market niche for products.

b. Focusing on quality.

c. customizing products as per local needs and produce on larger scales.

d. Maintaing excellent relations with market related people in host countries to ensure smooth access.

e. Seting up services netweork in all these countries through local tie-ups to ensure better customer satisfaction.

f. Managing supply chain to ensure minimum transport and distribution losses.