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Modes of entry into International Business Video Lecture | International Business - B Com
FAQs on Modes of entry into International Business Video Lecture - International Business - B Com
| 1. What are the different modes of entry into international business? |  |
Ans. The different modes of entry into international business include exporting, licensing, franchising, joint ventures, and foreign direct investment (FDI).
| 2. What is exporting in international business? | |
Ans. Exporting is the most basic mode of entry into international business, where goods or services are produced domestically and then sold in foreign markets. It involves shipping products to customers in other countries, either directly or through intermediaries.
| 3. What is licensing in international business? | |
Ans. Licensing is a mode of entry where a company grants permission to a foreign entity to use its intellectual property, such as trademarks, patents, or copyrights, in exchange for royalty fees. This allows the foreign entity to produce and sell the licensed products or services in their market.
| 4. What is franchising in international business? | |
Ans. Franchising is a mode of entry where a company (the franchisor) grants the rights to operate its business model and sell its products or services to a foreign entity (the franchisee) in exchange for fees and royalties. The franchisee benefits from the established brand and support of the franchisor.
| 5. What is foreign direct investment (FDI) in international business? | |
Ans. Foreign direct investment (FDI) is a mode of entry where a company directly invests in a foreign country by establishing subsidiaries, acquiring local companies, or setting up new production facilities. FDI allows the company to have greater control over its operations in the foreign market and access to local resources and markets.
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