Final answer:
Exporting and licensing are two alternatives to FDI that allow companies to engage in international trade without the need for large capital investments required for direct purchases or new enterprises abroad. Other methods such as franchising and joint ventures can also be considered.
Step-by-step explanation:
Two alternatives to Foreign Direct Investment (FDI) are exporting and licensing. Exporting involves selling goods or services produced in one country to another country, while licensing involves granting a foreign entity the right to produce and sell a company's product in their country in exchange for fees or royalties. Additional alternatives include franchising, which is similar to licensing, but typically involves providing a broader package of support, includingmarketing and training, and joint ventures, wherein companies from different countries partner to create a new entity, sharing the costs, risks, and profits.