Exercises $($i$)$

Entry Mode Options

Businesses must make a number of decisions about entering foreign markets including which markets to enter, when to enter those markets, and on what scale. The firm may also choose from a number of entry modes. These choices are strategic decisions affecting both the short$-$and long$-$term options for the firm.

When considering entry modes, both the advantages and disadvantages of each must be understood. The firm needs to consider such aspects as cost$,$ risk, and potential economies of scale, as well as the regulatory and political environments of the foreign market.

Roll over each item on the left and identify the advantages and disadvantages of each entry mode. Then, drag it to the appropriate location on the chart.

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