There markets, when, and on what measure. “A

There are some vital choices that the business must take before foreign development like which markets, when, and on what measure. “A greenfield investment is an establishment of a new operation in a foreign country i.e., a parent company starts a new venture in a foreign country by building new production facilities from the ground up” (C.W. L Hill, T. M. Hult, 2018) The main advantages of greenfield investments are having absolute control over the venture endeavor. A company that gains access into a foreign market through a greenfield venture has full control over the goods or services fabricated or marketed. There are a few advantages and disadvantages of exporting. When exporting it increases the company’s sales and profits. Selling services to a certain audience, the company never had before will increase profits. It will improve domestic competitiveness and increase worldwide market dividends. The franchisee manages the business under the name of the company that they choose. There are low risk and low investment and not as much control over day to day functions. Franchising may be more difficult than a domestic franchise. License, companies can appreciate somewhat endless streams of royalty and income. Furthermore, having a license makes them more desirable to investors and customers. Licensing may allow companies to have little say over where their goods are sold and who may buy them. All companies will have different reasons for going investing international, which will impact which entry mode is best matched to them. A company will need to control their required level of obligation, flexibility, power, attendance, and risk when going global, to select the entry mode which best matches their policy. C.W. L Hill, T. M. Hult. (2018, Retrieved 11/21/18 10th edition ). GLOBAL BUSINESS TODAY. In 10th Edition. New York, NY, 10th edition: Mcgraw-Hill. Retrieved from Purdue Global.


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