Storm Fighters Inc. Makes winter clothing in the United States, and it is looking to distribute its products in Europe. Rather than build and maintain a manufacturing facility in the Netherlands, the company decides to ship its winter gear directly from its plant in Montana. What type of entry mode is the company using?

Question

Business

Yusuf Short

7 January, 23:33

Storm Fighters Inc. Makes winter clothing in the United States, and it is looking to distribute its products in Europe. Rather than build and maintain a manufacturing facility in the Netherlands, the company decides to ship its winter gear directly from its plant in Montana. What type of entry mode is the company using?

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Answers (1)

Know the Answer?

Joshua Mack · Answer 1

The Answer is, "Direct Exports".

Explanation:

Any commercial entity (a "heavy word for a Business!) looks forward to expand beyond their regional market.

When they are moving on to foreign markets, it important to bring the product or services to the foreign customers in these markets. So, we can identify that there are several common ways for this. they are,

Direct Exports: Like in this scenario. You produce the product yourself and directly exports it overseas. Works better when the shipments are smaller! Indirect Exports: Where you select some local distributors or sales agents and then carry out business in foreign market. Franchising Licensing Fully Owned Subsidiary: Where the company incorporates a wholly owned subsidiary in the foreign country and then do business.