Deciding How to Enter the Market
Once a company decides to target a particular country, it must choose the best mode of entry for its brands. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and direct investment, as shown in Figure 20.2. Each succeeding strategy entails more commitment, risk, control, and profit potential.
Figure 20.2
Five Modes of Entry into Foreign Markets
When going global, firms often start by working with an independent agent and entering a nearby or similar country. Later, the firm establishes an export department to manage its agent relationships. ...
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