Once a company decides to target a particular country, it must determine the best mode of entry. Each of its market entry strategies involves more commitment, risk, control, and profit potential
List these market entry strategies in order from low risk to high risk.
The five modes of entry into foreign markets are as follows:
1. indirect exporting
2. direct exporting
3. licensing
4. joint ventures
5. direct investment
The level of risk involved in each rises steadily, with indirect exports entailing minimum risk, and direct investment involving the maximum risk.
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A) Monthly premiums B) Coinsurance C) Number of doctors accepting new patients D) Maximum out-of-pocket expenses per year
Which is the biggest advantage of the data flow approach over narrative explanations?
A) freedom from committing to the technical implementation of the system too early B) further understanding of the interrelatedness of systems and subsystems C) communicating current system knowledge of users through data flow diagrams D) conceptual freedom found in the use of the four symbols