<P> In relation to the eclectic paradigm, companies that have low levels of ownership advantages do not enter foreign markets . If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low - risk modes such as exporting . Exporting requires significantly lower level of investment than other modes of international expansion, such as FDI . The lower risk of export typically results in a lower rate of return on sales than possible though other modes of international business . In other words, the usual return on export sales may not be tremendous, but neither is the risk . Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control . An exporter usually resides far from the end consumer and often enlists various intermediaries to manage marketing activities . After two straight months of contraction, exports from India rose by 11.64% at $25.83 billion in July 2013 against $23.14 billion in the same month of the previous year . </P> <P> Exporting has a number of drawbacks: </P> <Ul> <Li> Exporting from the firm's home base may not be appropriate if lower - cost locations for manufacturing the product can be found abroad . It may be preferable to manufacture where conditions are most favorable to value creation, and to export to the rest of the world from that location . </Li> <Li> A second drawback to exporting, is that high transport cost can make exporting uneconomical, particularly for bulk products . One way to fix this, is to manufacture bulk products regionally . </Li> <Li> Another drawback, is that high tariff barriers can make exporting uneconomical and very risky . </Li> </Ul> <Li> Exporting from the firm's home base may not be appropriate if lower - cost locations for manufacturing the product can be found abroad . It may be preferable to manufacture where conditions are most favorable to value creation, and to export to the rest of the world from that location . </Li>

Explain nature scope and meaning of international marketing