ABSTRACT
The rationale of the overseas drive stems from a multiplicity of factors. Stemming from the relative ease in setting up breweries abroad and beer’s relatively low unit costs, exports are much less important for beer than for wine and spirits. Even more so than wine, most distilled spirits are largely consumed by higher income groups, and hence the major traditional markets continue to be the DMEs. There are certain specific constellations of market forces where licensing agreements enjoy the balance of advantage over subsidiaries and joint ventures. As foreign exchange restrictions and constraints continue to bedevil global trade, it would appear that such barter agreements could acquire greater prominence, not only in CPEs, but possibly in developing countries as well. Whereas the preceding sections analysed both domestic and international sales strategies, it will be seen that TNC pricing policies are one of the unifying strands in corporate strategies.
