Foreign Markets

Once a strategic focus is decided, the selection of the means of transferring a company’s competitive advantage becomes an essential choice – does a multinational company use licensing, exports, wholly-owned subsidiaries, joint venture, direct investment, partnership, or alliance to enter new markets? Or, could it be a mix of all these?

compare and contrast when it would be advantageous, and disadvantageous, to enter a foreign market under the methods listed above (licenses, exports, etc.).  Be sure to:

• Define and explain each method.
• Detail when it would be advantageous, and disadvantageous, to utilize each of the methods.
• Offer an example of a multinational company who utilizes each method and explain if you believe it is the most or least appropriate method to utilize for that company given their product or service.