In a recent interview for the magazine Clarín SMEs (published in the month of March , Supplement Trade) we consulted on the characteristics of opening branches of Argentine companies abroad, which is a variant that takes the process of internationalization of companies, little by little is being developed in the country.
is convenient to analyze the different features that enterprises need for the internationalization process to be as beneficial as possible. In a highly globalized world, companies that can survive are those that have internationalized successfully and in a position to compete head to head, not your local competitors, but with the world.
In search of alternatives ranging from working with distributors, traders, brokers, agents and / or representatives, we find a cheaper alternative, although it is the most complex to develop for SMEs in Argentina, on occasion, be the most appropriate for certain types of businesses.
This is important to consider because many companies are investing abroad. As in any business decision, one must find the benefit following the decision to invest in a country other than that originally belongs, with all the risks involved.
Having the resources and skills necessary to gain advantage over competitors in the country to invest. They should be firm-specific advantages and they can move beyond the borders of the country without major complications. Management, expertise, patents, trademarks, know how, among other variables tend to be very important in seeing that our company has advantages, and also be in the country. Intangibles are treated as owned by the company, they have no significant cost to transfer to other Overseas countries.
In many cases, new regulations or market characteristics are less profitable international business transactions, so establishing subsidiaries in the market can transform these flaws into advantages for the company with an established look. What once saw as a barrier to market our products, becomes in protecting what we sell and as a subsidiary.
Leverage lower-cost production factors on settling in different geographical areas and to exploit location advantage. Here as example we see the large amount of foreign investment receiving countries such as China, which, based on its low labor costs, and an impressive domestic market, leading many companies in filing subsidiaries in that country.
On the other hand, have effective management teams in the parent to provide them with support and know-how to manage large scale and share information and knowledge between subsidiaries to handle situations.
An interesting alternative the opening of a subsidiary, would be the formation of a mixed capital company. That is, rather than embarking on a solitary adventure, we seek a partner in the country. A local partner gives us access to the market that is unknown to us the hand of a person who knows the market and allows us to reduce investment risks.
Another variant, could be a Joint Venture, which is a tool for anything more sophisticated but impractical for local companies relying on know-how, capital and technology necessary to be associated with any company in the country to invest, without need to form a new company. There are different types of Joint Venture, which is not the intention further, but if you take them into account when considering alternatives to the establishment of subsidiaries.
Later we will delve on the characteristics of the methods used by most companies that interact with the outside (import-export) discussing the most common characteristics of each type, benefits, and experiences.
invite all those who wish to write about their experiences, businesses, trades, professions, writing in this blog
is convenient to analyze the different features that enterprises need for the internationalization process to be as beneficial as possible. In a highly globalized world, companies that can survive are those that have internationalized successfully and in a position to compete head to head, not your local competitors, but with the world.
In search of alternatives ranging from working with distributors, traders, brokers, agents and / or representatives, we find a cheaper alternative, although it is the most complex to develop for SMEs in Argentina, on occasion, be the most appropriate for certain types of businesses.
This is important to consider because many companies are investing abroad. As in any business decision, one must find the benefit following the decision to invest in a country other than that originally belongs, with all the risks involved.
Having the resources and skills necessary to gain advantage over competitors in the country to invest. They should be firm-specific advantages and they can move beyond the borders of the country without major complications. Management, expertise, patents, trademarks, know how, among other variables tend to be very important in seeing that our company has advantages, and also be in the country. Intangibles are treated as owned by the company, they have no significant cost to transfer to other Overseas countries.
In many cases, new regulations or market characteristics are less profitable international business transactions, so establishing subsidiaries in the market can transform these flaws into advantages for the company with an established look. What once saw as a barrier to market our products, becomes in protecting what we sell and as a subsidiary.
Leverage lower-cost production factors on settling in different geographical areas and to exploit location advantage. Here as example we see the large amount of foreign investment receiving countries such as China, which, based on its low labor costs, and an impressive domestic market, leading many companies in filing subsidiaries in that country.
On the other hand, have effective management teams in the parent to provide them with support and know-how to manage large scale and share information and knowledge between subsidiaries to handle situations.
An interesting alternative the opening of a subsidiary, would be the formation of a mixed capital company. That is, rather than embarking on a solitary adventure, we seek a partner in the country. A local partner gives us access to the market that is unknown to us the hand of a person who knows the market and allows us to reduce investment risks.
Another variant, could be a Joint Venture, which is a tool for anything more sophisticated but impractical for local companies relying on know-how, capital and technology necessary to be associated with any company in the country to invest, without need to form a new company. There are different types of Joint Venture, which is not the intention further, but if you take them into account when considering alternatives to the establishment of subsidiaries.
Later we will delve on the characteristics of the methods used by most companies that interact with the outside (import-export) discussing the most common characteristics of each type, benefits, and experiences.
invite all those who wish to write about their experiences, businesses, trades, professions, writing in this blog
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