1. 15. The above. Two common types of contractual entry strategies include: _____ and _____ relationship. Firms can pursue them independently or in conjunction with other foreign market entry strategies. Licensing _____ is an arrangement in which the owner of an intellectual property grants another firm the right to use that property for a. International Market Entry Mode. ‘Market’ in this case may refer to a market segment, domestic or international. reduce local perceptions of the focal firm as a foreign enterpriseStrategic Alliance: A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. The time required to implement entry modes to foreign markets may strongly vary: contract-based entry modes usually entail quicker realization compared to equity-based entry modes. Can harm existing relationships. dynamic, flexible choice (enter with franchising then FDI - to test market) ` 5. There are several motivations for companies to consider a partnership as they expand globally, including (a) facilitating market entry, (b) risk and reward sharing, (c) technology sharing, (d) joint product development, and (e) conforming to government regulations. Terms in this set (17) Contractual entry strategies in international business. Equity. This partnership can occur between businesses, non-profit organizations, or government entities. Study with Quizlet and memorize flashcards containing terms like What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?, What form of business ownership is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a. b) Market research: Data collection and profound survey to understand industry, rivals, and perspectives. Students also viewed these Business Communication questions. Step 3: Studying investment viability. How you enter a foreign market is highly dependent on your company’s capabilities and strategy, as well as on your target market. The global monetary value of licensed toys and games is expected to grow annually at the rate of 2-3% until 2020. The future of business unit depends on this decision whether it will survive or not. Foreign market entry modes. What are the four steps in developing a successful export strategy? (1) Identify potential markets (2) Match needs to abilities (3) Initiate meetings (4) Commit resources. Market entry strategies refer to a company’s goals, plans and decisions in regard to which market to enter, when to enter and how to enter (taking into account opportunities, threats and customer needs). SOURCE : Root, Foreign Market Entry Strategies, p. Complete Guide. Strategic alliance. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Terms in this set (19) Contractual entry strategies. 4 Understand franchising as an entry strategy. A collective mark _____. Definition and strategies. Transport costs, trade barriers, political risks, economic risks, costs and firm strategy. When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. A. There are various market entry strategies that can be employed by firms in developing their foreign business. certain "cooperative" modes. , 75 percent) joint venture is a contractual entry mode strategyA solid joint venture entry strategy should encompass several important elements. 1 Joint ventures It is a business agreement in which the parties agree to develop, for a finite time, a new entity and. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. firm gives another firm the right to produce/market its product in a specific country in return for royalties. Contractual entry strategies in international business Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. Our solutions are written by Chegg experts so you can be assured of the highest quality!3. The first step is to decide on what you want to achieve with your exporting project and some basics about how you’ll do so. Along with Coca-Cola, recognized as the world’s most valuable brand, the company markets four of the world’s top five nonalcoholic sparkling brands, including Diet Coke, Fanta, Sprite, and a wide range of other beverages, including diet and light beverages, waters, juices and. One of the advantages of direct exporting for company include more control over the export process. Indirect and Direct Export. Adloonix team takes care of details. View the full answer. Barkema, Bell and Pennings (1996) suggest that low commitment entry strategies may be preferred to. There are three primary types of contracting strategies include: Storage and retrieval strategies for digitizing and storing your contracts and related documents. 1. Question: Contractual entry strategies in international business are cross-border exchange in which the relationship between the focal firm and its forgein partner is governed by an explicitly contract. Market entry strategies involve market entry. Clear direction: Market entry strategies require market research about exporting guidelines, foreign tariffs, and more. The licensee will provide the majority of the infrastructure in most situations. Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. As discussed in Chapter 8, all but exporting are also methods to accomplish corporate strategies in their domestic markets to diversify their portfolio. The choice of entry mode is an important strategic decision for SMEs as it involves committing resources in different target markets with different levels of risk, control, and profit return. However, the focus in this chapter is on M&A as a market entry or expansion mode. Choose question tag. In addition to exporting, companies can choose to pursue more specialized modes of entry—namely, contracutal modes or investment modes. Cateora, Philip R. Buying more time to build a reputation. Chemawat (in Deresky) developed a CAGE strategy of global entry that is an abbreviation of. All tutors are evaluated by Course Hero as an expert in their subject area. 2 The Entry Mode In this paper, we use the Uppsala model (Johanson & Wiedersheim-Paul 1975). View Sample Solution. Definition: Market Entry Strategies are the plan, methods or channels available with the firm to expand their business in the new target market within and across nations. 3. Is your time best spent reading someone else’s essay?The respective statements are as follow: 1. Contract Manufacturing. 4) Joint Ventures for Service Providers. Key marketing strategy #1: LEGO’s phenomenal market entry strategy. It’s a low-cost, low-risk option compared to the other strategies. ENTRY STRATEGIES to foreign markets Exporting Contractual Entry Modes Foreign Direct Investment ( Many US co’s went directly through FDI) Exporting directly tied to. Discard Apply . Which markets to enter. Study with Quizlet and memorize flashcards containing terms like 1) Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract T/F True Exporting and foreign direct investing are two common types of contractual entry strategies T/F Two common types of contractual entry strategies are licensing and franchising. ENTRY STRATEGIES to foreign markets Exporting Contractual Entry Modes Foreign Direct Investment ( Many US co’s went directly through FDI) Exporting directly tied to jobs Disadvantage: no intern-al knowledge of the market Types • Indirect • Direct agent/distributor • Direct branch/subsidiary Export Services • Export Management Company • Trading. , Patents provide inventors the right to. Market Entry Strategies. - By utilizing various contractual entry strategies, Warner is able to generate royalties. Ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works, and words. researchers (Distler, 2005; Laudicina, 2012) who suggest that the locus of global. There are four different approaches of foreign market-entry from which to decide on: exporting, contractual agreements, strategic alliances, and direct foreign investment. (2004) differ between ownership-based entry modes (OBEs) and contract based modes (CBMs). -Screen and qualify partner candidates. Contractual entry strategies are a common method of entry for firms seeking to expand their operations into international markets. Intellectual Property Answer & Explanation. -They typically include the exchange of. Foreign direct. Exporting is a easy way to enter an international market. INVESTMENT ENTRY MODE. contractual entry investment entry. Contractual entry strategies in international. Requires extensive research. Reduces political risk as in most cases, the licensing or franchising partner is a local business entity. 412 Contractual entry strategies in international business- cross-border exchanges where the7. The institutional distance between home and host countries influences the benefits and costs of entry into markets where a firm intends to conduct business. Conversely, we incur a $1,250 loss if we get stopped out. (1995) introduced a comprehensive foreign market entry decision framework. They typically include the exchange of intangibles and services. Students also viewed these Business Communication questions. The main global market entry strategies include exporting, franchising, licensing, joint ventures, strategic alliances, mergers and acquisitions, and direct investment. Intellectual property. Barkema, Bell and Pennings (1996) suggest that low commitment entry strategies may be preferred to. Market entry strategies are the methods and channels that a company uses to enter a new market. 4 types of market entry strategies. The following sub heading will discuss how licensing impacts market entry in the United States. decide on the mode of. Direct Investment. , Exporting and foreign direct investing are two common types of contractual entry strategies. Posted on 03/06/2021 by admin. Ideas or works created by individual firms, including discoveries and inventions; artistic, music, and literary works; and words, phrases. Low cost of entry into an international market. Licensing. Contractual modes involve the. Our firm recommends the following market entry cycle: a) Brief: Discussion of the current business situation. firm can pursue individually or in conjunction with other entry strategies 4. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. Each category has several subcategories. Zhao et al. How does LEGO generate royalties by using contractual entry strategies? In answering this question you should understand the role of royalties within an organization. Conclusion: Licensing and franchising are two contractual entry strategies that offer distinct advantages and disadvantages. A) fails to specify the type of product that must be purchased. Exporting is the most popular foreign entry strategy and can become an international learning experience. economic, political and demographic power. stages are not followed carefully. give later entrants a cost advantage over early entrants. Through a distribution contract, the foreign investor makes real its planned market entry strategy in order to achieve its goals. Question: Briefly compare and contrast the four market entry strategies which are Exporting, contractual agreements,strategic alliances, and direct foreign investment. Definition. Turnkey projects. 1. Direct exporting allows consumers or businesses in new markets to easily buy your products wholesale, where you handle the shipping. 3. Posted on 03/06/2021 by admin. Secondly, it should involve detailed market analysis to understand the competitive landscape and potential challenges. Acquisition Strategy—purchasing existing facilities. Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey projects, management contracts, and leasing. See full list on mbaknol. [TITLE] 5 Source: International Business by Rakesh Mohan Joshi (Pg No. That means, entry mode strategies are often massive, irreversible, and can influence the performance of the firm in the long run. These modes of entering international markets and their characteristics are shown in Table 6. 3, there are trade-offs in the selection of the method of entry to another country. The non-equity modes category includes export and contractual agreements. Turnkey projects could be considered especially with significant customers and as a specific type of project marketing as actors through the network of. 16 to 1 SEK. Direct exporting is often considered the default choice for new market entry. Entry mode choice is a critical ingredient of international entry strategies, and has been voluminously examined in the field. Greenfield investments. Foreign licensing is a simple way of getting involved in international marketing. As in the traditional entry mode and international franchising literatures, it is suggested that both organizational and environmental determinants influence the franchisor’s choice of entry mode (direct franchising, foreign direct investment, area development agreement, joint. A) a monetary down-payment plus royalties for all products sold locally B) a combination of intellectual property and technical information and assistance l a storefront or facility and the necessary materials to make the product D) a combination of a lump-sum payment and the intellectual know-how 37) wh 38) In a licensing agreement, the. A brief overview of the different modes of entry into emerging market opportunities. In the context of foreign market entry strategies, the advantages of _____ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. How does LEGO generate royalties by using contractual entry strategies? In answering this question you should understand the role of royalties within an organization. View All. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international. Chapter 4- Social and Cultural Environments. 3. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. In international business, choosing the right entry mode is essential to maximize the success of your international expansion. 1. 26 terms. to foreign markets. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. Relevant market entry strategies, such as franchising, contract manufacturing, joint ventures, and others are explained and categorized in light of crucial determinants of international business decision making: hierarchical control of operations, the firm’s proximity to the foreign market, the investment risk, and the factor of time. Study with Quizlet and memorize flashcards containing terms like contractual entry modes include (9):, contractual entry modes is when. 4. . 1 International-Expansion Entry Modes; Type of Entry Advantages. 1 Licensing. As a current or aspiring contract manager, learning about the contract management process. Licensing. Direct investment. Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Some companies use direct exporting, in which they sell the product they manufacture in international markets without third-party involvement. These types of entry modes consist of several similar, but get different contractual arrangements between the firms form the domestic market and the company that licenses the intangible assets in the foreign market (Bradley 2005:243). Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. directly tied to jobs. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international. Nonequity- based entry strategies offer better protection against country risks and transactional hazards than equity-based strategies but non-equity strategies, such as export and contractual agreements, enable less organizational learning. , licensing and franchising) have lower up-front costs than investment modes do. Typically, there is an increasing degree of resource commitment from the export entry. Foreign direct investment (FDI) D. This kind of ‘greenfield’ investment – ‘greenfield’ meaning. “Entry Strategies: Modes of Entry”, section 5. Be that as it may, in the. C) licensing contract covers more aspects of operations. Licensing is low risk in terms of assets and capital investment. Export describes business activities where goods and/or services are sold outside the country in which the major value-added activities took place. Expert Help. Exporting to a foreign market is a quite common entry strategy many firms follow for at least some of their market. It is therefore recommended for the provision of financial services in the U. These three factors are firm factors, environmental factors and. 1 Each mode of market entry has advantages and disadvantages. Show transcribed image text. g. Entry Strategies for Emerging Markets; 2 Entry Strategies for Emerging Markets. Ask a question to Desklib · AI bot. Chapter 8: Global Products. The rising rate of globalization is prompting brands across the world to ‘think global’. OER 2019 Edition. Let's take a look these. two common types of contractual entry strategies relatively inexpensive way for a firm to establish a presence in the market without having to resort to FDI RoyaltyContractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit. g. Franchising. Pre-entry market evaluation and formulating a market entry strategy. 102) 67) Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time? A) franchising B) licensing C) management contract D) strategic alliance. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. 3) Franchising Services. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of. The time required to implement entry modes to foreign markets may strongly vary: contract-based entry modes usually entail quicker realization compared to equity-based entry modes. The mode of entry depends on the opportunity, what you know about it, and the opportunity cost of putting that effort and money into another opportunity. 2. strategic international alliances, and global strategic partnerships (GSPs) represent an important market entry strategy in the twenty-first century. LEGO says it is determined to secure a fair share, without com- promising its mission: to "redefine play and re-imagine learning. Process. 3. • Intellectual property: Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. and more. The transaction market entry of licensing is. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in IB, Licensing def, Licensing pro and more. As the marketing manager for Selfie, a self-driving car, what marketing entry strategy would you use to sell Selfie in Asia? Briefly explain why that would be the best strategy to use to sell Selfie to. Firms can pursue them independently or in conjunction with other entry strategies. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. contractual agreements. licensing vs franchising. Partnering. The choice of foreign country markets and the selection of corresponding market entry strategies belong to classical questions in the international business research, which – despite their high relevance for business success – have not yet been consistently solved. 2. Markman et al. Provide dynamic, flexible choice. g. 1: “International-Expansion Entry Modes”. Select one nation in Africa or South America and indicate which strategy you believe would be best for a mid-size American manufacturing firm that is considering entry into that nation. Four Barriers You Need to Overcome Before Planning Your International Market Entry Strategies. Market entry case examples to learn from. D) joint ownership. B) fails to specify the amount that will be spent on the purchase. Doing Business in Emerging Markets: Entry and Negotiation Strategies Milind R Agarwal , Pervez Ghauri , Tamer Cavusgil There are many texts available on International Business, but only a few provide a. Licensing and franchising are especially salient contractual entry strategies. Firstly, it makes the entire process of creating a contract much faster, allowing teams to get contracts sent out to prospects quickly. Avoids the cost of establishing local manufacturing operations, and it helps the firm achieve experience curve and location economies. FDIs have been portrayed as effective market entry strategy in the United States Market. Study with Quizlet and memorize flashcards containing terms like In global market entry, all of the following are entry decisions that must be made by management before entering an international market EXCEPT: a. Contract manufacturing also enables the firm to avoid labour and other problems that may arise from its lack of familiarity with the local. These are trade mode, investment mode and contractual entry mode. -determine the nature of legal relationship with the prospective partner. The question about the right international strategy is often divided into five major subjects: (1) Market entry as part of a general strategy, (2) the selection of target markets, (3). In the months and years before expanding, laying out the groundwork can help companies identify a clear direction and achieve success. This systematic literature review. 3 operations (i. 1. 2. Contractual Entry Modes 2. Licensing is an arrangement by which the owner of intellectual property grants another firm. Q: In 2008 Time Warner, Inc. When an organisation has made a decision to enter an overseas market, there are a variety of options open to it. 3. 1 (€ 133) billion toy industry. Driscoll recognized three modes to enter a foreign market: Export entry modes, Contractual entry modes, Investments modes. The analysis shows that equity-based entry modes prevail over contractual agreements among Chinese hotel chains covered by our sample. Louis Vuitton. 1. Wholly owned subsidiaries (greenfields or acquisitions), joint ventur es (majority or minority), and contractual entry modes management service contract, leasing or franchise. Easing entry and exit of companies through: A low-cost entry into new industries (a company can form a strategic partnership to easily enter into a new industry). Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. 55. As discussed in the preceding chapter, entry mode choice is seen as “a critical component” in the process of internationalization (Morschett et al. Contractual entry strategies in international business. 1. LO 4: Licensing, Franchising, & Other Contractual Strategies 14 Contractual entry strategies in international business Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. , 75 percent) joint venture is a contractual entry mode strategyContractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed. lacks the resources to make a significant commitment to the market. make it easy for later entrants to win business. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Study with Quizlet and memorize flashcards containing terms like Starbucks' relentless pursuit of global market opportunities illustrates the fact that most firms face a broad range of strategy alternatives. Market entry strategies involve market entry. Includes such knowledge-based assets of. Becoming a “habitual” supplier of products and services to loyal customers. What is a contractual entry mode? Contract Manufacturing: – This entry mode is a cross between licensing and investment entry. 5 characteristics of cross-border contractual relationships. (2004) differ between ownership-bas ed entry modes (OBEs) and contract based modes (CBMs). A company that decides to enter the international market. 10-14Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies, Characteristics of contractual relation, Intellectual property and more. This definition includes both entry mode strategy and international market selection. These. threats, (3) resources required for each entry mode and defensive strategy to be deployed, and (4) the time required to use each entry mode and. Country Entry Timing • 6 minutes. ,The study has identified the knowledge gap concerning suitable contract risk management strategies available for implementation to effectively prevent any contract parties from losing money, time and. Zhao et al. 1. The selection of entry modes when penetrating a foreign market ± A research study on the education institutes choice of entry mode Author(s) : Annica Gunnarsson , Master in Marketing 4FE02E Tutor: Åsa Devin e Subject: International Marketing Strategy Level and semester: Master´s Thesis , Spring 2011Expert-verified. 82. , 2010: 60). , and Graham, John L. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. For courses in international business. Table 8. Chapter 14 Licensing, Franchising, and other Contractual Strategies Opening: Harry Potter; The Magic of Licensing386 • Warner Brothers has exclusive licensing rights to the Potter series • Warner allows companies to use Potter realted images on manufactured products in exchange for royalty • Licensing process is self generating o Each new Harry. Cultural, Administrative, Geo-political and Electronic level. How does LEGO generate royalties by using contractual entry strategies? (LO 15. Study with Quizlet and memorize flashcards containing terms like Low-control Strategies (Exporting and Counter-trade & Global Sourcing), Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures), High-Control Strategies (Minority-owned and Majority owned equity joint. Study Resources. , contract based entry strategies are a _____ mode. Export modes of entry are a great place to start as they do provide immediate short-term benefits. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. Runnerz Inc. Foundation Concepts • Contractual entry strategies in international business: Entering a formal agreement with a distributor, joint venture firm, or other partner abroad - Often involves granting permission to a foreign partner to use intellectual property • Intellectual property: Ideas or works created by firms or individuals, such as patents, trademarks,. Test. Question: Question 17 Not yet answered Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Why franchising is the best market entry strategy? The most common advantages of franchising are that it capitalises on an already successful strategy, the franchisee generally has local knowledge, it's less risky than equity based foreign entry modes, and the franchisor isn't exposed to risks associated with the foreign market (Alon, 2014). Contractual Entry Strategies in International Business. These modes of entering international markets and their characteristics are shown in Table 6. , 2) Exporting and foreign direct investing are two common types of contractual entry. Question: There are many types of marketing entry strategies, to include exporting, contractual agreement, strategic alliance, and foreign direct investment. It is a particularly useful strategy if the purchaser of the license has a relatively large market share in the market you want to enter. A contract management lifecycle has three key focuses — creation, negotiation, and. As it becomes evident from the definition, the transfer of the right of use is arranged in a license contract. 1. firms to develop strategies to enter and expand into markets outside their home locations. decide on the time of entry. 3 Market entry in China as an example. Contractual obligations mainly depend on the entry mode. 2) Licensing Services. Intellectual Property. This case studyThey are governed by a contract that provides the focal firm with a moderate level of control over their foreign partner. The equity modes category includes joint ventures and wholly owned subsidiaries. As discussed in the preceding chapter, entry mode choice is seen as “a critical component” in the process of internationalization (Morschett et al. Preview. There are as many motives as there are strategies for international expansion. drive early entrants out of the market. Disadvantage: no intern-al knowledge of the market. We define franchising as a strategy mainly used by service companies, that allows the franchisee to use a business model, processes or brand name for a fee, to conduct. 2 Understand licensing as an entry strategy. Foreign market entry is the most important decision of a business unit. - negotiate a formal agreement. 6 market entry practices specifically for service exports. 13 Selecting and Managing Entry Modes flashcards. Licensing, Franchising and. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract Intellectual property: ideas or works created by individuals or firms, including discoveries. Each mode of market entry has advantages and disadvantages. INVESTMENT ENTRY MODE. Study with Quizlet and memorize flashcards containing terms like Royalty, Franchising. 15. Going Global • 8 minutes. There are many different ways to enter a market, and the most appropriate method depends on the. direct investment O d. D) franchise contract involves less control and. international experience. When LEGO set its sights on China, it entered the market by putting money into opening LEGO stores in major cities as well as cities that showed demand and interest. An MNC may move into that mode voluntarily (to test the waters, so to speak) or for purely defensive reasons (to prevent a competitor from entering the market or to. First, we contribute to international market entry research by identifying reciprocity as a non-contractual mode that has been largely ignored in. 1. The company contracts a firm in the foreign market to assemble or manufacture the products but they still have the responsibility for marketing and distribution of the products according to Root (1994:113); Chapter Overview. Disadvantages. -Choose going in alone or collaboration. Intellectual property. This research process involves legal counsel and international distributors. Advantages of Licensing and Franchising. tax benefits, subsidies, etc. 5. Preview. The contract also controls the money transfers. Market entry strategies involve market entry. 3 Contractual Entry Modes in North America, West Europe and Other Countries 41 5. 6. This lecture includes: Entry Strategies for Emerging Markets, Competitive Levels, Product-Market Fit, Business Environment, Entry Strategies, Export Entry Modes, Contractual Entry Modes,. Section 2. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. Exporting. The different approaches of market-entry can be further classified on the basis of the equity or non-equity requirements of each approach. To accomplish the goal. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. saralarabara. management 6. A) A joint venture B) One-hundred-percent ownership C) Licensing D) Exporting E) A Global strategic alliance; Answer: CForeign Market Entry Modes. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two or more enterprises stipulating that the involved.