Question

This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential. The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment.
Match the correct global market entry strategy with the followings.

a. Indirect Exporting
b. Direct Exporting
c. Licensing
d. Franchising
e. Joint Venture
f. Direct Investment

1. Moodmatcher lipstick
2. Boeing
3. Yoplait
4. McDonald's

Answer 1

Answer:

Matching the correct global market entry strategy with:

1. Moodmatcher lipstick  = b. Direct Exporting

2. Boeing  = b. Direct Exporting

3. Yoplait  = d. Franchising

4. McDonald's = d. Franchising

Explanation:

a) Global market entry strategies;

a. Indirect Exporting

b. Direct Exporting

c. Licensing

d. Franchising

e. Joint Venture

f. Direct Investment

Most of the globalized entities enter the global market space through direct exports to consumer countries.  Some others engage in licensing and franchising, joint venture and indirect exports of their products and services to non-domestic countries.  Huge revenues are earned through global trades.  Some companies like MTN headquartered in South Africa earn more revenue in foreign markets than in their domestic markets.