Export

Indirect

Direct

Cooperative export modes

Intermediate entry modes

Contract Manufacturing

Advantage

Low risks market entry

No local investment

Possible to avoid financing and currency risks

Local made image which may give advantage

Possible to control over marketing, sales and after sales

Disadvantage

Transfer of production know-how is difficult

Only possible if reliable and satisfactory manufacturer found

Need to provide extensively technical support to manufacturer staff

Difficult to achieve control over manufacturing

Licensing

Franchising

Joint Venture / Strategic alliances

Management Contracting