SCMT $3643$ Exam $1$ Study Guide

Lesson $2$: International Distribution

Video $2\mathrm{.}1$: Distribution Motivations

Why distribute internationally? Advantages and opportunities: expand business, experience economies of scale, profit from global economies in many business areas $($e$.$g$.$ advertising$),$ leverage and extend product short life cycles, balance production and sales, be more competitive

Video $2\mathrm{.}2$: Distribution Channels

Distribution channels alternatives:

a$.$ Indirect exporting: ETC

b$.$ Direct or Active exporting: foreign distributor, agent, marketing subsidiary, or directly to customers

c$.$ Production abroad: contract manufacturing, licensing, franchising, joint venture

For each option pay attention to: location and responsibilities of intermediary, advantages and disadvantages

Criteria for choosing your intermediary

How to find distributors abroad?