Modes of Entry

Question 1

Import

Answer 1

In another country and imported to home country

Question 2

Export

Answer 2

Made in home country and exported to another country to be sold

Question 3

Licensing

Answer 3

Implementation of contractual agreement to allow one business to use another business’s intellectual property

Purchase a license to use patents, brands, designs and business knowledge

Question 4

International agents and distributors

Answer 4

Local partnership
Often financial grants and incentives available for bringing an economic boost
Help navigate global expansion

Question 5

Overseas manufactoring

Answer 5

The rate of production, demand and location of distribution channels for a business increases, the business must consider lowering costs and increase efficiency to meet customer demand

Question 6

Sales subsidiaries

Answer 6

Business that is owned and controlled by a larger company
Sells the products of the ownership company through it’s subsidiaries
Eg. Nike (converse, umbro, Michael Jordan)

Question 7

Strategic alliances and joint ventures

Answer 7

Partnerships that allow businesses with complementary skills to benefit from another’s strengths

The businesses pool resources and share the costs of manufacturing and distributing new products and services

Joint venture is the agreement between two or more companies to form a new business that is owned by both