For a company like the GWC Valve International, they service companies all over the globe with their heavy machinery, durable and efficient valves. When you are going global as a company, it is important to determine which foreign markets to enter and to analyze the expenditures required to enter a new market and as well as deciding the best way to organize any operations overseas. There are different levels of involvement when it comes to going global as a company therefore the risk increase with the level of involvement and many companies will employ different strategies for these. It is important to export and import entry-level strategies such as the process of bringing in goods produced abroad and exporting is the act of selling home goods overseas.
There is the option for many different companies to countertrade or to franchise their companies. When it comes to countertrade, this is a barter agreement where the trade between two or more nations involves payment made in the form of local products instead of currency. Franchising on the other hand is a contract based agreement in which a franchisee can produce and or sell the franchisor’s products under that company’s brand name if the franchisee agrees to the operating terms and requirements. There is also foreign licensing agreement which is an international agreement in which one firm allows another firm to produce or sell its product or use its trademark, patent, or manufacturing processes, in a specific geographical area and in return for royalties or other compensation. For subcontracting, this is an agreement that involves hiring other companies to produce, sell or distribute goods and services. Many companies when going global, also choose to do off shoring and international direct investment which can be the relocation of the business itself since it is a lower-cost to go overseas to another location and direct investment is the ultimate goal of global involvement.
Barbara Ratliff