A branch office has several advantages over other forms of company representation in a foreign market:
Scope of activities
A branch office can perform all of the same activities as the home office, while offering better access to local resources and information.
Local presence
A branch office is able to access local suppliers and clients without the need to set up a delivery and supply network, increasing the overall effectiveness of the company’s services as well as negating the effect of the distance between the foreign market and the home office, which can discourage potential partners.
Service adjustability
As a branch office is a separate structure, its activities can be adjusted to the needs of a foreign market without overhauling the structure of the whole company — location-specific products, service types, etc. can be assigned to the branch to manage, rather than the home office.