Entering into international markets has its own advantages, risks and suitability depending on the different factors of the global business such as nature of the business, target audience, resources and strategic objectives.

Modes of Entry into International Business

Following are given some general modes of entry into international business that companies use to enter the global business world.

Following are given some general modes of entry into international business that companies use to enter the global business world.

Exporting 

It allows a licensor(company) to grant licensee(another company) the right to use its intellectual property such as patents, trademarks, or technology, in exchange for some amont of money or royalties.

Licensing 

 It involves two or more companies that come together to form a new entity to pursue a specific business opportunity present in the global market.

Joint Ventures

It is similar to licensing but it involves a broader range of support and ongoing assistance from the franchisor in the business.

Franchising 

 It is a contractual agreement used by companies to grant their rights to another for the use of technology, trademarks, and patents in return for the agreed payment for a certain period.  

Franchising 

It involves the collaboration between two or more companies to achieve mutual benefits prevailing in the global market.

Strategic Alliances