Commerce Exam  >  Commerce Questions  >  Which one of the following modes of entry bri... Start Learning for Free
Which one of the following modes of entry brings the firm closer to international markets?
  • a)
    Joint venture
  • b)
    Franchising
  • c)
    Licensing
  • d)
    Contract manufacturing
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which one of the following modes of entry brings the firm closer to in...
Joint venture means the collaboration of companies . eg. maruti suzuki ,,maruti is indian co. and suzuki is from Japan so with the help of their collaboration maruti sell their product in Japan and suzuki which is from Japan sell their product in india so with the help of joint venture brings the firm closer to international market
Free Test
Community Answer
Which one of the following modes of entry brings the firm closer to in...
Joint venture:
A joint venture is a mode of entry where a firm collaborates with a local company in the international market to form a new entity. This new entity is jointly owned and managed by both parties. Joint ventures enable firms to access the local market knowledge, distribution networks, and resources of the local partner. This brings the firm closer to international markets as it allows them to leverage the partner's expertise and establish a stronger presence in the target market.

Franchising:
Franchising is a mode of entry where a firm grants the rights to another party to operate under its established brand name, business model, and systems in exchange for fees and royalties. While franchising provides a way for firms to expand their presence in international markets, it may not necessarily bring the firm closer to the market. The franchisor typically maintains control over the brand and business operations, while the franchisee operates the business locally.

Licensing:
Licensing is a mode of entry where a firm grants permission to another party to use its intellectual property, technology, or know-how in exchange for a fee or royalty. This allows the licensee to produce or sell the licensed products or services in the international market. Similar to franchising, licensing may not bring the firm closer to the market as the licensee operates independently and the licensor maintains control over the licensed assets.

Contract manufacturing:
Contract manufacturing is a mode of entry where a firm outsources the production of its products to a third-party manufacturer in a foreign country. The third-party manufacturer produces the goods as per the firm's specifications and requirements. While contract manufacturing enables firms to access cost-effective production facilities, it does not necessarily bring the firm closer to the market as the manufacturer is not directly involved in marketing and selling the products.

Conclusion:
Among the given options, joint venture brings the firm closer to international markets as it involves collaboration with a local partner and allows the firm to leverage their knowledge and resources. Joint ventures provide a way for firms to establish a strong presence in the target market and access the local market opportunities. Franchising, licensing, and contract manufacturing, on the other hand, may provide access to international markets but do not necessarily bring the firm closer to the market in the same way as joint ventures.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer?
Question Description
Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which one of the following modes of entry brings the firm closer to international markets?a)Joint ventureb)Franchisingc)Licensingd)Contract manufacturingCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev