List and explain five mode of entry into international market?

Question: List and explain five mode of entry into international market?

There are several strategies businesses can employ when entering the international market, each with its own set of advantages and challenges. The first mode is Exporting, which involves selling products or services to foreign buyers. This method is often the initial step for companies looking to expand internationally due to its low risk and investment. The second mode is Licensing, where a company grants permission to a foreign company to produce and sell its products. This allows for brand expansion without significant investment in foreign operations. Franchising is similar to licensing but usually involves a closer relationship and control over the business operations, making it suitable for service-based industries. Joint Ventures involve partnering with a local business, sharing resources and knowledge for mutual benefit. Lastly, Direct Investment entails a significant investment in the foreign country, such as building manufacturing facilities or acquiring a foreign company, offering a high degree of control but also higher risk.

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