Following is (are) route(s) to enter foreign market:Select one:a.Exportsb.Joint Venturesc.Licensing Of Technology And Know Howd.All Of The Above
Question
Following is (are) route(s) to enter foreign market:Select one:a.Exportsb.Joint Venturesc.Licensing Of Technology And Know Howd.All Of The Above
Solution
d. All Of The Above
This is because all the options listed (Exports, Joint Ventures, Licensing Of Technology And Know How) are indeed recognized routes to enter a foreign market.
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Exports: This is the most traditional and well established form of operating in foreign markets. Exporting can be defined as the marketing of goods produced in one country into another.
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Joint Ventures: This is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets.
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Licensing Of Technology And Know How: This is a contractual arrangement in which the licensor's values created by innovation (technology, design, brand, trademark, patent, copyright, etc.) are licensed to a licensee in return for royalty payments.
So, all of the above are valid routes to enter a foreign market.
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In international business, involves having a foreign purchaser in the local market or using an export management firm.
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