Modes of Entry in International Business

PRINCIPLE OF
INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................4
Modes of Entry:...........................................................................................................................4
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
International business help countries around the globe by complex and simple value
chain. International business also help companies to grow in new market. Principle of
international business management includes globalization, trade theories, foreign direct
investment theory, company resources and corruption and taxes etc. This report will help to
explore and understand the different traditional and internation entry modes. This report explains
the retail industry and its major international entry modes which companies are using past
decades. Retail industry sells product, good and service manually to consumers. This report will
present mode of entry of retail industry in Asian economy. Mode of entry is a term in which
different industries try to expand their business internationally. This report will include different
types of entry modes such as exporting, licensing, joint venture, management and contract ,
franchising, acquisition and Green field investment etc. These entry modes help retail industry to
enter in international market and it also explains its characteristics, advantages and disadvantages
(Cantwell, 2017). Report also show that retail industry carefully evaluate their options to choose
the entry modes that best suites on their strategy and help them to achieve their goals. In the end
of the report motivation will be explain the reason of choosing different entry modes.
Modes of Entry:
This is a method which is used to expand business in international level. Mode of entry
have various modes such as franchising, licensing, foreign direct investment, acquisition, join
venture, management and contract and green field investment etc. These modes help business in
expansion. Different modes of entry is used by retail industry to expand their business globally.
Advantages disadvantages and characteristics help retail industry to set their business
internationally. In modes of entry retail industry explore the conventional international
contraction entry modes. These modes help business in entering in international market and set
their business.
Importance of market entry modes:
 Market entry strategy is very important for the business who are entering into new
markets because new markets are often complex and there are chances that businesses
can fail in new market because they don't have proper knowledge of insights and
competition.