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ABSTRACT
Foreign market entry strategy is an important strategic decision for international business units. The paper approches about cautious selection of strategy made for long-term implications in international marketing environment. The choice of appropriate strategy depends upon factors like risk level, tariff barrier, transportation cost, management vision and resource availability etc.
Keywords: Export, licensing, joint venture, turnkey project, franchising.
1. INTRODUCTION
The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions will heavily influence the firm's other marketing-mix decisions. Globalisation promote the international business units to take entry in various nations. Global marketers have to make a multitude of decisions regarding the entry mode which may include [2,3]:
* the target product/market
* the goals of the target markets ?
* the mode of entry
* The time of entry
* A marketing-mix plan
* A control system to check the performance in the entered markets
There are two major types of entry modes: Equity and Non-equity modes. The non-equity modes category include export and contractual agreements. The equity modes category includes: joint venture and wholly owned subsidiaries
2. EXPORT
Exporting is the most traditional and well established form of entering into foreign markets. Exporting can be defined as the marketing of goods produced in one country into another. Exporting is very useful when a country has surplus production capacity. At the same time, the country enjoys comparative advantage in producing these goods in comparison to other nations. It can be further described in two ways:
Direct Exports
Direct exports represent the most basic mode of exporting made by a company, capitalizing on in production concentrated in the home country and affording better...