Exporting is the first and least risky option for companies pursuing international expansion. List the other 5 options for pursuing international expansion.

 

Five other options for pursuing international expansion.

1.Licencing of the company

2.Establing a joint venture

3.Foreign Acquisitions

4. Launching a wholly-owned subsidiary

5. Forming a strategic alliance

Step-by-step explanation

Explanation

Although international expansion may be costly and risky, the benefits are enormous. Going international exposes a company to a large market, attracts more sales and profits, extends the life cycle of the product, and reduces risks of operating in one market only. Before entering a foreign market, carefully make considerations when making decisions. It has significant impacts. Opt for an option that is much favorable to your company. Below are several options to pursue international expansion:

i) Licensing attracts and favors small businesses since it is affordable and less risky while maximizing profit. Licensing allows a company from the country you have targeted to use your property.

ii)Establishing a joint venture. It involves the establishment of a business that is jointly owned by two companies. Both companies provide a management team for the new business, share costs, and control the business.

iii)Foreign acquisitions allow a company to gain control over another firm in the targeted country. This is a long-term strategy to strengthen a company's foreign presence.

iv)Launch of a new wholly formed subsidiary, also known as greenfield venture. Its formation is complex and costly since it involves the formation of a new business in another country. It enables a firm to gain maximum control as well as potentially provides above average returns.

v) Formation of a strategic alliance involves an agreement between two or more business entities to work together in a particular way for a certain period to achieve the same goal.