Question

Create a research paper that lists and explains the methods available to a business for opening a business in a foreign country. In other words, what avenues can be sued to enter the market in another country. Do some research being attentive to APA source citation and referencing guidelines.

Answer 1

answer-

Doing business in foreign country increases the chances of growth and profitability of a Home base business. There are some ways or methods by which a Business can enter into foreign country and start doing business.

Exporting-

Exporting is one of old and traditional method to do business in foreign country. Under this method, A business start to sell his products directly in other foreign countries.In this method, Transportion cost is high because Company has to pay for taxes, transporation charges, papers, duties etc.

For example-I have business of energy drink in US and i want to enter in India so i would directly contact with deals of india and sell them my energy drink.

Licensing-

Licensing is a method in which you grant legal permission to another company in your target country to use your product and sell them in that country. In return you get fee for the right.

for example- I make a software application to handle any type of cyber attack and i patent it. I want to grow my business so i decided to license my software to UK business. They will give me fee and then they have the right to sell this software in UK.

Franchising-

Franchising is very popular method to enter into foreign country. In this method, one party(Franchisor) grants his right to use thier business name, product, trademark to another party called Franchisee . Mcdonalds, starbucks, subway etc are example of franchies operating in many countries.

Joint Venture-

A joint venture as the name suggest is the method in which two or more companies come togther and share their resources in order to achieve specific task. . However, the venture is its own entity, separate from the participants' other business interests.

For example- I am telecommunication company of US and want to enter into Dubai so i would do JV with famous company say etisalt in Dubai.

Foreig direct investment-

In this method, A company invest in business of another company in another country. It requires a lot of capital to cover costs such as premises, technology and staff. FDI can be done either by establishing a new venture or acquiring an existing company.