SMEs usually choose ________ as their main strategy for entering foreign markets.

Question

Quizplus · Accepted Answer

Exporting is the most common and feasible entry mode for SMEs as it involves minimal investment and low risk. SMEs can export using indirect methods like agents, distributors or direct methods like setting up their own export department. Importing is not a strategy for entering foreign markets but rather a way of procuring goods and services from foreign suppliers. Divesting involves selling or liquidating existing assets in a foreign market and investing involves setting up subsidiaries or joint ventures in a foreign market to gain a strong foothold. Both of these strategies require substantial investment and are risky for SMEs.

SMEs Usually Choose ________ as Their Main Strategy for Entering