Bradley 2002 further states that once a strategy is

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Unformatted text preview: el of resource commitment are they willing to make? And second, what level of control over the operation do they desire? The factor influencing these two questions is the perceived risk of entering a new country and a new market, thus it has to be taken into consideration and the alternatives have to be well evaluated because this will eventually lead to the entry mode choice (ibid). Bradley (2002) further states that once a strategy is selected companies have to select the right type of market entry mode. The foreign market entry modes can be divided into three groups: 1. Export entry modes 2. Contractual entry modes 3. Investment entry modes Export entry modes include direct and indirect exporting i.e. selling to foreign visitors on the domestic market or to foreign agents, distributors or a subsidiary. The difference between export entry modes and the other entry modes, contractual and investment entry modes, is that within export entry modes the final product is produced outside the target market. Contractual entry modes include licensing, franchising, contract manufacturin...
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This document was uploaded on 03/22/2014.

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