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    Global modes of entry into foreign markets

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    What are the various modes of entry for a multinational enterprise (MNC) to expand operations or sales to another country? Why would an MNC select one mode of entry over another? What change in conditions would alert an MNC to consider a different mode of entry?

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    The basic modes are to export into the country, Piggy back onto another product that is already available in the country, licensing (sometimes done through distributorships), joint ventures with current in country company, and direct investment.

    The mode of entry is most important to decide and the rules of the company and the government's policy on foreign investment also is an important deciding factor. With only exporting ...

    Solution Summary

    A discussion on the basic modes of entry of businesses into foreign markets and why each is preferable for businesses.