For sales in excess of the export quota, BBEF keeps more export revenue and there is greater flexibility in the use of the foreign funds generated.
BBEF has set up a subsidiary in Hong Kong which serves as an important window to the outside world, and also collaborates with some other FTCs in overseas market research.
Foreign advertising is limited mainly to mailouts of product literature to clients, "friends" of BBEF, and other contacts.
The broadcasting equipment manufactured by BBEF is not technologically advanced.
They are assigned by the government and BBEF has had little flexibility in selecting candidates.
Both CNNPA and BBEF rely on exports from China as the primary means of servicing overseas demand, and management strive for central control over a number of important overseas marketing decisions.
In relations with overseas subsidiaries, and when dealing directly with end-users, central control over product policy and pricing is strong in both CNNPA and BBEF.
Direct sales to end-users, which are particularly important in BBEF, are different, with a greater likelihood of ethnocentric policies.
The ethnocentric hypothesis thus provides an incomplete explanation of the overseas marketing programs implemented in both CNNPA and BBEF.