The advantages of using an export strategy to build a customer base in foreign markets include:

Question

Quizplus · Accepted Answer

Export strategy allows a company to enter foreign markets with minimal risk and direct investment requirements. This is because the company does not need to establish a physical presence in the foreign market or make significant investments in assets. Instead, the company can simply export its products to foreign customers and build a customer base gradually. This approach is often cheaper and more cost-effective than other strategies such as licensing, franchising or a multicountry strategy. However, export strategy does have some disadvantages such as the need to comply with local regulations and deal with fluctuations in exchange rates.

The Advantages of Using an Export Strategy to Build a Customer