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1.0 Introduction
The following report will discuss something of PK electrics, which includes knowledge and skills involved in the international market. For the purpose of providing a report, it will explain why PK Electrics is considering entering international markets. To know which sources of information would help PK, the PK Electrics should select appropriate international market to enter. Then the report describes key opportunities and threats of entry into international market. It also explains the process PK Electrics would use to select which market to enter. Furthermore, the modes of market entry available to PK Electrics are identified. Last, it evaluates which method of market entry would be most appropriate for PK Electrics.
2.0 Findings
2.1 Entering international market
There are some factors for PK electrics to consider entering international markets.
For the product life cycle, there are many marketing mistakes because firm fails to acknowledge the fact that there are different counties and a product may be on different stages in its PLC.
For the production-related factors, be close to raw materials, availability of resources, advanced technology, be able to forceful attract and encourage firm to invest abroad.
For the personnel-related factors, high unemployment rates and weak trade unions in the target areas could be a good reason for foreign direct investment.
For the Market-related factors, many firms make decisions to get into international market because the company is planning to go there already and they do not want to be at a disadvantage like the rush entry of many companies from the capitalist world to the ex-communist countries in Eastern Europe.
For the external, market saturation should be considered. Fierce competition from domestic and foreign companies, high cost of production and shortage of the required managerial and technical skills are some reasons why firms might find further investments in home markets less attractive then fore
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