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Essay / Understand and critically evaluate the entry modes of...
The choice of entry modes of enterprises in the international market and their advantages and disadvantagesIntroductionWell-known companies like Nike, Microsoft, Sony, Shell Group are just some of the large companies that have gone global and expanded their trade around the world, these are large companies that operate internationally in many countries. The development of global integration pushes companies to open up to international markets and interact with foreign customers. Businesses focus on meeting market demand with their products or services, and their goal is to increase profits. To achieve these objectives, they favor the expansion of their work in a foreign market. Other reasons to internationalize their business may be to become stronger than other competitors and furthermore, to reduce their expenses by obtaining the resources they need at a lower cost. Recently, most business activities are affected by changes occurring on a global scale; this is a result of their operational activities in foreign markets, most companies export goods, move resources with other countries and many companies also source from foreign countries. Likewise, these business activities of companies outside the country contribute to the growth of the economy. The aim of this article is to understand and critically evaluate the modes of entry of companies into the international market and to understand their advantages and disadvantages; This research question was chosen to understand how a company decides to engage in the international market and whether this choice is a good or bad decision for the future of the company. The first part of the article which is a literature review will explain in detail the types of input choices, after evaluating the first part, the second part in the middle of the article......e operations. Since the initial decision to enter the foreign market of enterprises is to increase sales, which leads to increased profits, the enterprise should choose an entry mode that promises a higher return on investment, therefore the internationalization process will result in success. The objectives of this paper were to understand the foreign market entry modes and critically evaluate their advantages and disadvantages, the objectives have been achieved. Although the amount of research has been limited and therefore no generalizations can be made, this report cannot conclude that there is a better choice of entry mode for a particular firm when it decides to s 'internationalize, as well as each advantage and disadvantage mentioned in the second part of the study. paper cannot be used for all businesses, they can be contrasted for separate industries.