You work for a firm that has decided to exploit the possibilities that sales abroad can bring and want to become an active exporter. You have 2 potential customers under consideration:

a. The first customer you are considering is a potentially large customer in Malaysia where the business potential could be about 15% of you current firm revenues per year for the next few years. This customer requires standard diesel machines, similar to the ones you are already supplying to your customer base in the USA.

b. The second is a potential customer in China. The future business potential is uncertain, however it could grow in the future or this could be even a one-off sale it depends on how the first few transactions are handled and the support provided to the customer. This customer requires diesel machines which will be custom built for the customer.

What channel (method of entry into the market) would you use in each of the above cases? Justify your answer. What factors would you consider in making the decision?