Cite this article as:"Entering Global Markets," in The Business Professor, updated April 23, 2020, last accessed August 10, 2020, https://thebusinessprofessor.com/lesson/entering-global-markets/.
Back to: Business Management
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.