Foreign market entry modes
Ways a company can expand its services / From Wikipedia, the free encyclopedia
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In international trade, foreign market entry modes are the ways in which a company can expand its services into a non-domestic market.
There are two major types of market entry modes: equity and non-equity. The non-equity modes category includes export and contractual agreements.[1] The equity modes category includes joint ventures and wholly owned subsidiaries.[2] Different entry modes differ in three crucial aspects:
- The degree of risk they present.
- The control and commitment of resources they require.
- The return on investment they promise.[3]