Entering Global Markets
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Entering Global Markets book
This chapter examines the various modes of entry available to small and medium-sized enterprises, although much of the material is relevant for larger firms as well. In particular it discusses export modes, intermediate entry modes (contractual and equity-based), and hierarchical modes. Because most entrepreneurial businesses are small to medium in size, their initial choices for international market entry tend to include low- to moderate-risk strategies, such as indirect and direct export (export modes). International joint ventures are attractive to businesses because of their shared risk, shared knowledge and expertise, and the potential for synergy and competitive advantage in the global marketplace. The rapid internationalization of the companies, defined as born-global firms, follow two major dimensions: geographic scope, as reflected by the number, spread, and diversity of targeted foreign markets; and the extent of foreign operations committing different value chain activities to global markets.