Question

This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.

The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment

Answer 1

Throughout the clarification subsection below, the definition of the questionnaire provided is defined.

Step-by-step explanation:

• Indirect Exporting and Moodmatcher lipstick

Rationale: A organization like Moodmatcher lipstick manufactures the understood as a tool and promotes this through an intermediary throughout numerous governments or foreign.

• Direct Exporting and Boeing

Rationale: A business including Boeing creates the goods domestically which exports anything without an intermediary throughout foreign nations.

• Licensing and Yoplait

Rationale: In return for royalty as well as the fee, a business like Yoplait sells the rights to copyright, trademark, proprietary information, and perhaps other prized intellectual property.

• Franchising and McDonald's

Rationale: Companies including McDonald's are licensed to launch new franchises which are one of the quickest expanding methods for market entry.

• Joint Venture Ericsson and CGCT

Rationale: The Swedish networking group Ericsson has entered into a joint venture partner CGCT, another French switching group.

• Direct Investment and Nissan

Rationale: A domestic company such as Nissan invests in some kind of an international subsidiary and retains it.