Question: I need help, please Selecting an Entry Mode A firm contemplating foreign expansion must make three basic decisions: which markets to enter, when to enter

I need help, please Selecting an Entry Mode AI need help, please

Selecting an Entry Mode A firm contemplating foreign expansion must make three basic decisions: which markets to enter, when to enter those markets, and on what scale. Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Firms can use six different modes to enter foreign markets: exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. Each entry mode has advantages and disadvantages. Roll over each advantage and disadvantage listed on the left to read a description, and then drag it to the corresponding mode of entry in the chart. Exporting Turnkey Contracts Licensing Host country and controls FDI and foreign country Franchising Manufacturing and transportation costs Risks and capital investment Joint Ventures Costs, risks, and profits Development cost and operational strategy Wholly-owned Subsidiaries

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