| Pros |
Cons |
| It
is yours to control |
Normally
high start up costs |
| Faster
and easier contacts with HQ |
Could
be difficult to find good local people |
| Profit
stays within the company |
Could
be costly and risky if not done right |
| Will
increase prestige on market |
If
not successful it can have bad long-term effects |
| More
freedom for own ideas |
Can
demand a larger administrative organisation than if using local distributor |
| It’s
own legal entity. Separated from HQ |
Own
company can have a too narrow range of products to be able to profitable |
| Better
feed back from market |
The
foreign investment can be influenced by risks both Economical and Political |
| For
larger contracts it is a definite advantage to own operation |
|
