The Creator of the innovative Export Master® program

What are the pros and cons of having your own foreign operation?

Under your controlHigh start up costs
Easier communications with HQCould be difficult to find good local people
Profit stays within the companyCould be costly and risky.
Will increase prestige in domestic and international marketsIf not successful, can have long-term negative impact
More freedom for implementing ideasCan demand a larger administrative organisation than if using local distributor
An independent legal entity separate from HQMay have too narrow a range of products to be profitable
Better feedback from marketForeign investment can be influenced by risks (Economical and Political)
For larger contracts, a definite advantage to own the operation