Final answer:
Foreign direct investment (FDI) is a significant foreign market entry strategy notable for its long-term orientation and managerial control, though not always the most common. It contrasts with portfolio investment, which allows for quicker market entry and exit.
Step-by-step explanation:
The most common foreign market entry strategy is not always foreign direct investment (FDI), but it is one of the most significant due to its long-term focus and the managerial control it provides. FDI involves acquiring or establishing a business in a foreign country with a sustained interest and at least a ten percent stake, signifying a considerable degree of control over the company's operations.
As an example, when InBev acquired Anheuser-Busch, they executed significant FDI by providing euros to the foreign exchange market to demand U.S. dollars. On the other hand, portfolio investment represents a shorter-term strategy with investors obtaining less than ten percent of a company, allowing for quicker entry and exit from a market. Portfolio investments can be made virtually instantaneously, unlike FDIs that require more extensive planning and execution over weeks or months.