Entering Global Markets

Cite this article as:"Entering Global Markets," in The Business Professor, updated April 23, 2020, last accessed October 25, 2020, https://thebusinessprofessor.com/lesson/entering-global-markets/.

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How do businesses globalize or 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 one’s 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.

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