Transactional and delegation

Context

The firm does not have in-depth knowledge of the foreign market. Its experience on the international scene is limited but it's clear the company need to expand its activities abroad. Export transaction costs (transportation costs, insurance and customs duties) do not compromise the competitive strength of its products. Manufacturer's control over distribution channels is not required to succeed in the foreign market.

Suggested penetration strategy:

• Outside trading house
• Subcontract for a domestic exporting contractor