Wholly Owned Subsidiary

In: Business and Management

Submitted By jasonbanac
Words 497
Pages 2
Team Leader: Alcantara, Jaimie M. 12 August 2015
Members: 4M3
Aranton, Novena Marie O.
Banac, Jason M.
Factolerin, Francis Eriel B.
_____________________________________________________________________________________
Export/Import
Advantages:
* Indonesia has recently passed a law regarding exporting and importing. The newly passed law means exporting and importing of the country will adopt depending on the demand and supply of a commodity. And since Indonesia has a high demand for milk products but low in capacity to produce, it would be advantageous for Alaska Milk Corporation to export their milk products there. * Since there is low capacity in Milk production in Indonesia, there is a potential for market expansion after testing the market through exports. * According to ForeignAffairs.com, Indonesia’ economy, just like the Philippines, soared during the last half decade and is still continuously growing. They also have a strong foreign exchange and top performing stock market. * For instance Alaska Milk Corporation will have excess production, their milk products can still be sold in the international market without sacrificing its current prices. It would be a beneficial clearance of their excess production.
Disadvantages:
* Alaska products may need to be modified to meet the safety and security codes and other country restrictions. * Exporting to another country would take extra costs for the licensing, new promotional materials depending on the culture and market information, and other administrative costs. * Entering the export business requires careful planning when it comes to their different strategies, such as picking the most competitive price and knowing the threats and opportunities for the exported products of AMC.
Wholly Owned Subsidiary
Advantages:
* The operational and strategic control…...

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