Advantages And Disadvantages Of Mode Of Entry

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2.1) Modes of entry into an international market are the channels which your organization employs to gain entry to a new international market. There are different types or kinds of modes of entry which include:
• Licensing:
Licensing is a type of mode of entry that refers to a arrangement that is stated in a contract that involves when a business makes their assets available to a certain business or organization.
The licensed asset can be a brand name, a company name or product formulation. Licensing is used all over the world by many businesses and organizations especially in the fashion industry. Licensing has the benefits of allow businesses to mislead export barriers of their quotas and tariffs.
Advantages of Licensing are that it enables companies to circumvent tariffs, quotas or other similar export barriers. (Modes of Entry into International Markets (Place), 2016).

• Ownership (full):
Full ownership refers to that the investor has complete control. This is when someone wants to own and operate their own business without a partner. Ownership refers to developing and operating your business from the ground up. Many companies use ownership as a mode of entry, because it allows them to expand rapidly in the different markets, to have control (better) and the increase profitability. Ownership requires the greatest commitments of
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Allows companies to have better control over their brand. Exporting helps companies to improve and develop the employment of the company. The benefit of exporting is that it allows companies to expand to new markets in foreign countries. Companies can analyze and gather information about the amounts of products they sold and how many money did they make by exporting their products to different countries. Exporting products can be very beneficial for businesses but it will cost a lot of money for transport such as air transport or water
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