Business, 19.07.2021 16:30 angelreji4702

Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Firms can use six different modes to enter foreign markets: exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. Each entry mode has advantages and disadvantages. Roll over each advantage and disadvantage listed on the left to read a description, and then drag it to the corresponding mode of entry in the chart Exporting Turnkey Contracts Licensing Development cost and operational strategy Host country and controls Franchising FDI and foreign country Risks and capital investment Joint Ventures Costs, risks, and profits Manufacturing and transportation costs Subsidiaries

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Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Fir...

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