Login here for access. Please help improve it or discuss these issues on the talk page. Demirel finds all of these changes to form the strengths of Albania in terms of FDI. Active and Reactive Exporting". This institutional arrangement has now, incidentally, spilled over into the domestic market where firms are wishing to target higher quality, higher priced segments. Knowledge spillovers License period is limited Joint Ventures Import barriers Large cultural distance Assets cannot be fairly priced High sales potential Some political risk Government restrictions on foreign ownership Local company can provide skills, resources, distribution network, brand name, etc. The duration of these transactions is commonly one year, although occasionally they may extend over a longer time period.
Moreover, the difference relates to the degree of product standardization and responsiveness to local business environment.
Localization Strategy: your key to successful Foreign Market Penetration
In some cases a mixture of direct and indirect exporting may be achieved with mixed results. One problem is the marketability of products received in countertrade. Some advantages of a strategic alliance include: Acquisition is lower risk than Greenfield investment because of the outcomes of an acquisition can be estimated more easily and accurately. In Zimbabwe, United Bottlers have the licence to make Coke. Often it is called "straight", "classical" or "pure" barter. Location of Albania in itself offers a notable trade potential, especially with EU markets, since it shares borders with Greece and Italy.