GLOBAL WINGS THROUGH INTERNATIONAL MODES OF ENTRY AND EXPANSION
Abstract
Global business paradigm has opened innovative ways of alliances for those who want to avail the fruits of free flow of resources beyond national boundaries. Selecting a mode for entering or expanding in a foreign market is a crucial strategic decision for foreign firm. This article identifies and compares the most influential factors that affect the international modes of entry and expansion decisions of foreign firms. The present paper aims at exploring various dimensions of entry modes into a foreign market, the need for such modes and the outcomes. A company entering into a foreign market employs one or more of the modes of entry that is, exporting, licensing, international joint venture, and setting up a wholly owned subsidiary. As an outcome the foreign firms are sensitive to external risk and other factors. International experience, appear to be the most important when selecting modes of entry. International Joint Ventures and wholly owned subsidiary may be more appropriate for internationally-experienced firms, than inexperienced companies for global wings.
Authors
Mayank Kumar Pandey, Dr Dileep Singh