Entry Mode Options Businesses must make a number of decisions about entering for

Question

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. Profit from processes Entry Mode Exporting Turnkey Project Licensing Lower costs lost Advantage Disadvantage Access to local expertise Battles for control Low capital requirement Cost avoidance Lost economies Tight control Joint Venture oll Subsidia Most costly method Little future revenue

Explanation / Answer

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. Profit from processes Entry Mode Exporting Turnkey Project Licensing Lower costs lost Advantage Disadvantage Access to local expertise Battles for control Low capital requirement Cost avoidance Lost economies Tight control Joint Venture oll Subsidia Most costly method Little future revenue

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