Question

If a firm is entering an overseas forgein market that has an established, well-functioning economy ---but...

If a firm is entering an overseas forgein market that has an established, well-functioning economy ---but also has a decreasing population, which mode of market entry is most appropriate, and why? (exporting, turnkey, franchise, license, joint venture, or wholly owned subsidiary)

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Answer #1

THe most appropriate mode of market entry is the licencse. through license a firm can enter an overseas foreign market that has an established , well -functioning economy . because we know that in that economy there is a decreasing popolution and so the potential of sales is also low and it also lacks the ability to become a competitor. as we know, a well functioning economy, there are barrier on export and import, there must be legal protection possibilites in the economy, but the main concern is the decrease population, the aggregate demand not that high in that economy therefore , license is the best appropiate mode to enter the economy.  

through license, a firm can easily minimize risk and investment risk , and it can able circumvent trade barriers.

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