The three basic strategies for entering foreign markets are exporting, contractual agreements, and international direct investment.

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These three strategies represent the primary approaches companies use to enter foreign markets, each varying in degree of investment and control. Exporting involves selling products produced in one country to customers in another. Contractual agreements include licensing and franchising, where a company grants rights to another company to produce or sell its products. International direct investment involves a firm investing directly in facilities to produce or market a product in a foreign country, including joint ventures, wholly owned subsidiaries, and acquisitions.

The Three Basic Strategies for Entering Foreign Markets Are Exporting