Final answer:
A firm seeking to internationalize can enter foreign markets through direct exports, licensee of foreign brands, export intermediaries, or sell-off to foreign entrants.
Step-by-step explanation:
A firm seeking to internationalize can enter foreign markets through various methods:
- Direct exports: This involves selling products directly to customers in foreign markets. For example, a clothing manufacturer in the United States can export its products to other countries by shipping them directly to retailers or consumers.
- Licensee of foreign brands: This involves obtaining a license from a foreign brand to produce and sell its products in a specific market. For instance, a beverage company in Brazil can become a licensee of a popular soft drink brand from the United States and produce and sell their products in Brazil.
- Export intermediaries: This involves using intermediaries such as export management companies or trading companies to handle the exporting process. These intermediaries assist in market research, distribution, and logistics. They connect domestic firms with foreign customers or distributors.
- Sell-off to foreign entrants: This refers to selling a company or its assets to a foreign investor or firm. In this scenario, the firm seeking to internationalize exits the market and transfers ownership to a foreign entrant.