Expand into Foreign Markets - Explained
How expand into Foreign Markets?
Written by J. Mance Gordon
Updated at April 22nd, 2024
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How do Businesses Enter Foreign Markets?
The primary manners by which businesses expand into foreign markets include:
Global Sourcing
Taking advantage of efficiencies of foreign markets for supply and labor.
Import/Export
Purchasing goods from outside of the country or selling goods outside of the country.
Licensing/Franchising
Selling rights in ones intellectual property rights (such as name brand and operational plans) to individuals operating the business in foreign countries.
Strategic Alliance
Aligning with existing foreign businesses to sell your product or services.
Joint Venture
Forming a new business entity with a foreign company to operate in the foreign jurisdiction.
Foreign Subsidiary
Opening or purchasing a business in a foreign country. The business is owned by the parent company in the home jurisdiction.