modes of entry in international business
Below given are the most popular modes of entry into international business.
(1) Exporting and Importing: Purchase and sales of goods and services from/to foreign countries.
(2) Contract Manufacturing: Outsourcing manufacture of specialised, innovative and technically advanced components of goods to local manufacturers in foreign countries.
(3) Licensing and Franchising: Licensing involves granting of patents rights by firms in home countries to firms in foreign countries in return of royalty. On the other hand, franchising involves strict adherence to the rules as to how the franchisees are operating in similar lines to that of the franchiser.
(4) Joint Venture: Collaborating with foreign firms for the accomplishment of pre-decided objectives for a specified time period.
(5) Wholly Owned Subsidiaries: Establishment of sister concern companies abroad by purchasing 100 per cent shares of foreign companies.
(1) Exporting and Importing: Purchase and sales of goods and services from/to foreign countries.
(2) Contract Manufacturing: Outsourcing manufacture of specialised, innovative and technically advanced components of goods to local manufacturers in foreign countries.
(3) Licensing and Franchising: Licensing involves granting of patents rights by firms in home countries to firms in foreign countries in return of royalty. On the other hand, franchising involves strict adherence to the rules as to how the franchisees are operating in similar lines to that of the franchiser.
(4) Joint Venture: Collaborating with foreign firms for the accomplishment of pre-decided objectives for a specified time period.
(5) Wholly Owned Subsidiaries: Establishment of sister concern companies abroad by purchasing 100 per cent shares of foreign companies.