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The modes of entry in global market can be described as follows:

Export: It is selling domestic products to foreign countries. It is executing orders received from foreign countries. They can be received direct or through middlemen. Where, export helps to increase sales volume. Economics of scale can be reaped. However, it caves logistics, procedural, servicing and market promotion problems.

Licencing: It is contractual mode. The foreign company is allowed to use brand name or technical know how for a fee or royalties. Franchising is an example.

· It requires little investment. The returns are attractive. But the licencee can turn into a competitor.

· Management contracts and turnkey projects also provide entry.

Joint Venture: It is ownership sharing in foreign countries. It can be an assembley operation where technology and component parts are supplied. It can involve transfer of management know-how and marketing skills. Foreign direct investment is involved.

Foreign Direct Investment: It involves establishment of a subsidiary. A new company is started or an existing local company is acquired. There is full ownership and total control over operations. Multinational companies use this modality.

Market accessibility is ensured. Barriers and restrictions can be avoided. However, profits may not occur in the short run.