Question

Which of the following describes the most typical order of entry into foreign markets?

Answer 1

Answer:

None of above is the answer. The correct order is: B.exporting, licensing, franchising, joint venture, and wholly owned subsidiary.

Explanation:

Once the company has selected the market or markets to which it will direct its international expansion strategy, it will move on to the phase of choosing the entry form. The decision will depend on the type of product or service to be exported, the financial commitment that the company is willing to assume, as well as the level of control and coordination of international operations.

“The different input methods are determined according to the nature of the control that can be exercised over the distribution channel, over the products and brands that are marketed in the destination country”