Modes of entry into international markets range from low-commitment (exporting, licensing) to high-commitment (wholly owned subsidiaries, greenfield investment). Each mode involves a different trade-off between control, risk, investment, and speed of market entry.
Modes of Entry Into International Markets When a firm decides to enter a foreign market, it must choose how. The choice of entry mode is one of the most consequential strategic decisions in international business — it determines the firm's level of control, financial commitment, risk exposure, and ability to adapt or exit. There are six primary modes of entry, arranged along a spectrum from low commitment to high commitment. Key Takeaways Six main entry modes: exporting, licensing, franchising,