International Journal of Social Science & Interdisciplinary Research_________________________________ ISSN 2277-3630

IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 1-11

Online available at indianresearchjournals.com

MODES OF ENTRY INTO INTERNATIONAL BUSINESS

RASHMI AND SAWITRI DEVI

ABSTRACT

The choice of entry mode represents a key strategic decision facing firms seeking expansion into
international markets. The objective of this article is to present a framework of modes of entry into
international business. It explain how to serve the oversees market through equity modes and non
equity modes. A firm seeking to perform a business function outside its domestic market must
choose the best mode of entry for the foreign market. Modes of entry into international business
may be equity, non equity and contractual. Entry modes include the exporting, licensing,
franchising, turnkey project, contract manufacturing, joint venture, acquisition and Greenfield
investment etc. International firm should analysis resource requirement, capability factors,
expected future return and risk factor while entry into international business.

KEY WORDS: Exporting, Licensing, Franchising, FDI, Greenfield, Acquisition, Joint venture,
Turnkey Project, Management Contract, Export Trading Company(ETC), Export Management
Company(EMC), Export Merchant (EM), Equity Modes, Non Equity Modes.

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International Journal of Social Science & Interdisciplinary Research_________________________________ ISSN 2277-3630
IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 1-11
Online available at indianresearchjournals.com

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