A direct foreign office is an extension of a company located abroad - ideally within the intended business zone. This is thus a direct trade channel.
PROS
CONS
PROS
- It is an office implanted abroad.
- It implements the commercial, financial strategy of the mother company/head quarters
- It disposes of local (if possible) work force which may be more adapted to: local customs, culture, language, working hours and holidays
- May store stock for local deliveries
- Locally develops a client portfolio
CONS
- Local office means local costs (services, elec, water, cleaning, charges....) and taxes
- One or many salaries to pay + warehouse costs (if applicable)
- Are taxes deductible, turnover retransferable to the mother company?