International Expansion Strategy Paper

International Expansion StrategyName:Institutional affiliation International Expansion StrategyIntroductionCompanies often face the challenge of selecting the most appropriate internationalization strategy when the local market becomes saturated. Factors to consider while making the decision on how to enter a market include cultural factors like language, taste, regional values, consumer habits and demographics. Economic factors include the availability of funds, per capita income, class structure, and demand and supply. Finally, the business must consider political factors like taxes, ease of acquiring a license, trade restrictions and political stability. Bluebonnet Creameries has identified China as a potential expansion destination. The company is unsure whether to forego the Chinese market to focus on its current markets, to build a production plant closer to its current distribution partners to handle all export requirements, to contract a Chinese distributor to supply the products to China, or to enter a joint venture agreement with a Chinese company to produce the products in China. The option of the joint venture would ensure that the company expands with minimal barriers to entry into the Chinese market. Joint venture strategy A joint venture is an agreement between two or more organization