Question

How can a firm enter foreign market?

Answer 1

Answer:

There are a variety of ways in which organisations can enter foreign markets. The three main ways are by direct or indirect export or production in a foreign country (see figure 7.2). Exporting is the most traditional and well established form of operating in foreign markets.

Answer 2

Answer:

FDI can be done either by establishing a new venture or acquiring an existing company. A wholly owned subsidiary (WOS) is somewhat similar to foreign direct investment in that money goes into a foreign company but instead of money being invested into another company, with a WOS the foreign business is bought outright.