- As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. A deliberate and well-planned Modular Contracting strategy can provide SWP programs with flexible. The findings, however, are very mixed, especially with respect to transaction-cost-related factors in determining the ownership-based entry mode choice. Recent Guides . GSPs are ambitious, reciprocal, cross-border alliances that may involve business partners in a number of different country markets. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. 15. View chapter 15. However, SMEs have limited financial and personnel resources ( Brouthers and Nakos, 2004, Nakos and Brouthers, 2002 ). GSPs are ambitious, reciprocal, cross-border alliances that may involve business partners in a. The alliances often advance common goals, secure common interests, or leverage resources and. , reported a net loss of $13. Study with Quizlet and memorize flashcards containing terms like 1) Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Root (1994:86) mention licensing, franchising, technical agreements, service contracts, management. researchers (Distler, 2005; Laudicina, 2012) who suggest that the locus of global. decide on the time of entry. Relevant market entry strategies, such as franchising, contract manufacturing, joint ventures, and others are explained and categorized in light of crucial determinants of international business decision making: hierarchical control of operations, the firm’s proximity to the foreign market, the investment risk, and the factor of time. 1 “International-Expansion Entry Modes” (Zahra et al. This research process involves legal counsel and international distributors. Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. The simplest form of entry strategy is exporting using either a direct or indirect method such as an. 1 Explain contractual entry strategies. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Ch09 Global Market Entry Strategies Licensing Investment and Strategic Alliances. Includes such knowledge-based assets of the firm or individuals as industrial designs, trade secrets, inventions, works of art, literature, and other "creations of the mind". After studying this chapter, you should be able to: 15. Direct Exporting. Export modes of entry are a great place to start as they do provide immediate short-term benefits. It’s a low-cost, low-risk option compared to the other strategies. Driscoll recognized three modes to enter a foreign market: Export entry modes, Contractual entry modes, Investments modes. Choose question tag. Previous question Next question. A. Having identified two gaps in the research on international market entry and on the institution-based view, we argue that reciprocity supported by informal institutions can help close these two gaps. drive early entrants out of the market. It’s a low-cost, low-risk option compared to the other strategies. There are two major types of market entry modes: equity and non-equity. 6 Joint Ventures VIII. Global Entry Strategy A Global Entry Strategy is the planned method of delivering goods or services to a new target market and distributing them there. 1. alexis_pflumm. 18. The investment entry mode is the one that requires the most commitment on the part of a company, in terms of both management time and financial and human resources. is a distinctive design or symbol that identifies a product or service. all of the above e. Can harm existing relationships. 1 International-Expansion Entry Modes; Type of Entry Advantages. 0) under a. Q: In 2008 Time Warner, Inc. It defines that the contractual entry modes include a variety of. Retrieved March 24, 2022, from marketing91/contract-. Firms can pursue them independently or in conjunction with other entry strategies. Trademark. 1. Licensing and franchising are especially salient contractual entry strategies. dynamic, flexible choices 5. Each mode of market entry has advantages and disadvantages. As the marketing manager for Selfie, a self-driving car, what marketing entry strategy would you use to sell Selfie in Asia? Briefly explain why that would be the best strategy to use to sell Selfie to. licensing, and contract manufacturing. Step 1: Appraising target markets. Generalizes on the best strategy to enter the market, e. 2. Advantages and disadvantages of franchising Foundation ConceptsFurthermore, disputes between franchisors and franchisees regarding contract terms, territorial rights, or intellectual property issues can arise and negatively impact the relationship (Cavusgil et al. Study with Quizlet and memorize flashcards containing terms like ________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive. Exporting to a foreign market is a quite common entry strategy many firms follow for at least some of their market. Outsourcing the production of goods or services to a local or foreign manufacturer. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. 1 (€ 133) billion toy industry. To accomplish the goal. A) A joint venture B) One-hundred-percent ownership C) Licensing D) Exporting E) A Global strategic alliance; Answer: CForeign Market Entry Modes. Foreign market entry modes. Changes in the franchisors’ strategy may be slow to implement, because franchise contracts usually run for 3–5 years, and substantial changes are only possible by changing the contracts. Direct investment. Chemawat (in Deresky) developed a CAGE strategy of global entry that is an abbreviation of. Production quality, adaptation to buyer preferences and a careful licensing strategy are the key driver's of the company's spectacular success in the US $ 151. ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words. 26 terms. This theory considers both location and ownership . 2) Licensing Services. Which entry mode to use. There are two major types of market entry modes: equity and non-equity. Clear direction: Market entry strategies require market research about exporting guidelines, foreign tariffs, and more. Conflict, Administrative, Geopolitical and Cultural potential. S. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. Study with Quizlet and memorize flashcards containing terms like 1) Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. View Sample Solution. Foreign market entry is the most important decision of a business unit. Contractual entry strategies in international. Clear direction: Market entry strategies require market research about exporting guidelines, foreign tariffs, and more. 1 Each mode of market entry has advantages and disadvantages. True. Contractual entry strategy _____ in international business refer(s) to a cross-border exchange in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. While the pandemic has led Indian companies to work more frequently with global partners in virtual environments, it remains to be seen whether this is a permanent shift in business practices. Contractual entry strategies in international business. In order to investment strategies which is a typical overcome this shortcoming it is advisable to feature for all contractual market entry find possibilities to recreate continuity modes. 14). Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. d. Licensing: Arrangement in which the owner of. Definition. Strategic Management Chapter 7. Wu & Zhao 186 foreign market entry decision framework, which identifies export, contractual and investment as the main foreign market entry modes. -They typically include the exchange of. 1 International-Expansion Entry Modes; Type of Entry Advantages. 6 market entry practices specifically for service exports. A) a monetary down-payment plus royalties for all products sold locally B) a combination of intellectual property and technical information and assistance l a storefront or facility and the necessary materials to make the product D) a combination of a lump-sum payment and the intellectual know-how 37) wh 38) In a licensing agreement, the. Firms can pursue them independently or in conjunction with other entry strategies. independently or in conjunction with other foreign market entry strategies (exporting/FDI) 4. 5) Hiring a Sales Representative. Under contract manufacturing, a company arranges to have its products manufactured by an independent local company on a contractual basis. Table 8. 3. Licensing is low risk in terms of assets and capital investment. 3. The first step is to decide on what you want to achieve with your exporting project and some basics about how you’ll do so. Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an. What is contractual entry mode? Two common types of contractual entry strategies are licensing and franchising. 5. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. , visiting the country; importance of relationships to finding a good partner; use of agents. There are four different approaches of foreign market-entry from which to decide on: exporting, contractual agreements, strategic alliances, and direct foreign investment. Chapter 16 pg. Strategy planning, market entry and implementation (3rd ed. Contractual entry strategies in international business. Fresh features from the #1 AI-enhanced learning platform. ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words. Exporting is a easy way to enter an international market. Firstly, they can provide a low-risk entry point into a new market without exposure to the risks. University University of Washington. , 2) Exporting and foreign direct investing are two common types of contractual entry. Points out of 7 Select one: Remove flag True False Question 18 Nations with economies based on agriculture and textile. Lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, freight savings, & the opportunity to improve the company image are the factors that would most likely lead a. 4) Joint Ventures for Service Providers. Which of the following is a contractual entry mode? A) joint venture B) wholly owned subsidiaries C) licensing D) exporting. India - Market Entry Strategy. The international entry strategy that requires the least investment of resources and has the least risk is _____. certain "cooperative" modes. 1. reduce local perceptions of the focal firm as a foreign enterpriseStrategic Alliance: A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. 3. How does LEGO generate royalties by using contractual entry strategies? 15-2. Equity. LEGO is a late entrant in the contractual. In his definition, the contractual entry modes include a variety of arrangements such as licensing and franchising. D) fails to make a hard-currency purchase of any product from that nation in the future. 25 “Market entry options”). Indirect and Direct Export. Contractual Modes of Market Entry. Definition. Flashcards. 15. 5. management 6. Runnerz Inc. D) franchise contract involves less control and. Do a Background Check. Market entry strategies involve market entry. When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. Resource commitment in an emerging market is examined in terms of the degree of control of the entry strategy employed. 2) The licensing company benefits from the licensee company’s local market knowledge. It defines that the contractual entry modes include a variety of arrangements such as licensing, franchising, management contracts, turnkey contracts, non-equity joint ventures, and technical know. Question: Exporting and foreign direct investment are the two most frequently employed contractual entry strategies, Select one: O True O False of the following terms, which refers to a focal firm's partial ownership of an existing firm? Select one: O a equity participation O b. For courses in international business. Licensing is a relatively sophisticated arrangement where a firm transfers the rights to the use of a product or service to another firm. Decisions are generally decentralized. Licensing allows another company in your target country to use your property. International-Expansion Entry. Starbucks doesn’t cultivate coffee and has no plantations in which they grow, harvest and cure coffee beans. Global sourcing is a specific type of international contracting that we addressed in Chapter 13. ‘Market’ in this case may refer to a market segment, domestic or international. Create flashcards for FREE and quiz yourself with an interactive flipper. The book connects to students of the technological age, facing a diverse and evolving economic environment fueled by. An explanation of the risk/reward versus control paradigm that all executive teams have to consider. Contractual entry strategies in international business. A brief overview of the different modes of entry into emerging market opportunities. Contractual Modes of Market Entry. Adloonix team takes care of details. 2. B) They are more susceptible to volatility and risk compared to FDI. These types of entry modes consist of several similar, but get different contractual arrangements between the firms form the domestic market and the company that licenses the intangible assets in the foreign market (Bradley 2005:243). Export describes business activities where goods and/or services are sold outside the country in which the major value-added activities took place. international experience. Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Firms move to new markets to grab the growth opportunities prevailing in different markets. It's also easier for the company to extricate itself from the situation if the results aren't favorable. They often enjoy complete de facto strategic and operational control (Contractor and Kundu, 1998b; Dunning, 1988). Indirect and Direct Export. In the months and years before expanding, laying out the groundwork can help companies identify a clear direction and achieve success. none of the aboveContractual entry modes include licensing, turnkey construction contracts, and management contracts. Contractual entry strategies in international business cross-border exchanges where the relationship between focal firm and its foreign partner is governed by an explicit contract. Companies need to have a strategy to enter world markets. This chapter addresses common motives for international expansion as well as the advantages and disadvantages of a variety of international market entry strategies. Need thoughtful strategy to tackle dissimilarities at different levels (global, macro, micro) Entry strategies depend on numerous factors including ; Size of the market, business environment ; Product-market fitThis course focuses on the challenges and opportunities associated with organizational management and business strategy in emerging economies. True Infringement of intellectual property is the unauthorized use or reproduction of products and services protected by a patent, copyright, trademark. In any case, the future trade. Our solutions are written by Chegg experts so you can be assured of the highest quality!3. Chapter 7: Market Entry Strategies. Preview. Management contracts are increasingly popular among owners. Ask a question to Desklib · AI bot. 70 terms. 2. Royalties. MASTER’S THESIS Arcada Degree Programme: International Business Management Identification number:With contract manufacturing as a strategy of foreign market entry, it is likely that the manufacturer will take over the entire process of producing the goods, especially if it is rather easy and coherent, as for example the German skin-care products company Beiersdorf, which transfers production of its Nivea cream for the Philippinean market. Respective advantages and disadvantages will be analyzed. Contract Manufacturing. _____ represents a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. " Questions 15-1. Unique Aspects of Contractual Relationships. Available under Creative Commons-ShareAlike 4. • Often mitigate liability of foreignness for the focal firm. Thus, exporting is the cheapest mode available among the rest and is preferable to a business enterprise with little experience of international markets. ENTRY STRATEGIES to foreign markets Exporting Contractual Entry Modes Foreign Direct Investment ( Many US co’s went directly through FDI) Exporting directly tied to jobs Disadvantage: no intern-al knowledge of the market Types • Indirect • Direct agent/distributor • Direct branch/subsidiary Export Services • Export Management Company • Trading. Sets with similar terms. Students also viewed these Business Communication questions. Licensing 2. A firm wishing to expand into foreign markets can use contractual entry strategies, foreign direct investment, and exporting, among other strategies. A contract is an agreement between two parties to clarify the business relationships and rights of both parties. (2005). Direct Investment. Chapter 16 Licensing, Franchising, and Other Contractual Strategies Learning Objectives: 1. However, afterBuild trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. Terms in this set (17) Contractual entry strategies in international business. exchange of intangibles (intellectual property) 3. Test. For Shen et al. Here are some other examples of contract manufacturing in a few different industries:10. Firstly, it needs to determine the goals of the joint venture and align them with the strategic objectives of all the participating entities. , 75 percent) joint venture is a contractual entry mode strategyA solid joint venture entry strategy should encompass several important elements. Registration: Not necessary: Mandatory: Training and support: Not provided: Provided:. Contractual Entry Modes 2. Typically, there is an increasing degree of resource commitment from the export entry. , Patents provide inventors the right to. The company contracts a firm in the foreign market to assemble or manufacture the products but they still have the responsibility for marketing and distribution of the products according to Root (1994:113); Albaum & Duerr (2008:380). Licensing. As shown in Figure 9. Using the results of your market research, choose a market entry strategy. strategic international alliances, and global strategic partnerships (GSPs) represent an important market entry strategy in the twenty-first century. However, many foreign distributors have faced several issues due to mistakes such as lack of clarity of the contract terms, not inclusion of certain provisions, incorrect interpretation of Chinese legal system and. 4 Entry Strategies of Multinational Corporations into New Markets. that foreign market entry strategies usually accord with the sequential stages of Exporting, Competitive alliances, Acquisition /foreign direct investment. Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. Zhao et al. What makes up a contractual entry strategy? (3) 1. INVESTMENT ENTRY MODE. • Intellectual property: Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. firm can pursue individually or in conjunction with other entry strategies 4. Exporting _____ involves a binding contractual agreement between two businesses whereby the marketing. Licensing allows another company in your target country to use your property. 1. Wholly owned subsidiaries. Answered by PrivateWombatMaster624. D. Currency rate used The current exchange rate used in this thesis for the U. Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy? high risk of low sales due to fluctuations in exchange rates. _____ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents. One of the advantages of direct exporting for company include more control over the export process. The non-equity modes category includes export and contractual agreements. Major Issues In Going Global Global marketers have to make a multitude of decisions regarding the entry mode which may include: (1) the target product/market (2) the goals of the target markets (3) the. A strategic alliance is an agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations. The transaction market entry of licensing is. 1 Explain contractual entry strategies. Intellectual Property Answer & Explanation. Marketing91. A modern approach to international business. Licensing and franchising are examples of transfer-related market entry strategies. In general, the implementation of an international development strategy is a process achieved. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of. However, the story is very different when firms. Secondly, it should involve detailed market analysis to understand the competitive landscape and potential challenges. (2017) foreign market entry modes are a structural agreement that makes a firm able to do their business activities in the international market. , 2016). More recently, Brouthers and Hennart (2007. The leading toymaker that is sure in the building block toy market with a market share of eighty five percent globally. Exporting. Intellectual Property. A company that decides to enter the international market by investing equity in a. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Production in foreign country 1-Contractual Entry Licensing: Licensing is defined as “the method of foreign operation whereby a firm in one country agrees to permit a country in another country to use the manufacturing, processing, trademarks, knowhow or some other skill provided by the licensor” • A company assigns the right to a patent or a. but secures a contract to provide extensive onsite technical and management support. View All. Franchising is a contractual international market entry mode as a licensing agreement when an organization wants to enter a foreign market quickly with low risk and resource commitment. We’ll also share their pros and cons, which we recommend keeping in mind as you decide on the most suitable approach based on your target markets, available resources, and business objectives. Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Process. It is a particularly useful strategy if the purchaser of the license has a relatively large market share in the market you want to enter. Entry mode choice is a critical ingredient of international entry strategies, and has been voluminously examined in the field. Joint venture. It is one of the firms’ most important decisions when entering new markets. INVESTMENT ENTRY MODE. The advantages and disadvantages of the market entry strategy are as follows: Advantages. , 2010: 60). market size. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) _3. These. A license is “a contractually transferred right to use a legally protected or unprotected in vention in exchange for a fee or another type of compensation” (Mordhorst 1994, p. As in the traditional entry mode and international franchising literatures, it is suggested that both organizational and environmental determinants influence the franchisor’s choice of entry mode (direct franchising, foreign direct investment, area development agreement, joint. Study with Quizlet and memorize flashcards containing terms like ________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. Contractual modes involve the use of contracts rather than investment. an entry strategy requires decision on (1) the choice of a target product/market, (2) the objectives and . Less control, licensee may become a competitor, legal and regulatory environment (IP and contract law) must be sound: Partnering and Strategic Alliance: Shared costs reduce investment needed, reduced risk, seen as local entity:. Coca-Cola. Greenfield is a form of FDI where your firms China market entry investment is undertaken through the construction of new operational facilities from scratch. Question: Contractual entry strategies in international business are cross-border exchange in which the relationship between the focal firm and its forgein partner is. Firstly, it makes the entire process of creating a contract much faster, allowing teams to get contracts sent out to prospects quickly. Driscoll (1995) identified three modes to enter a foreign market: Export entry modes, Contractual entry modes, Investments modes. If well implemented, these strategies will help a construction project be successful and experience fewer contractual disputes. Access For Free. The question about the right international strategy is often divided into five major subjects: (1) Market entry as part of a general strategy, (2) the selection of target markets, (3) choosing the right time to enter a foreign market. Study with Quizlet and memorize flashcards containing terms like ________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. The most common methods firms join international trade are through contractual entry strategies such as direct exporting, franchising, licensing, management contract, contract manufacturing, buying a company, and joint ventures. The subject of market entry strategies is a much-researched but still contemporary one. Licensing. Market small, might export or contractual entry. Nonequity- based entry strategies offer better protection against country risks and transactional hazards than equity-based strategies but non-equity strategies, such as export and contractual agreements, enable less organizational learning. Besides, wholly-owned subsidiaries are the most usual ownership mode, since we only found four joint ventures. The non-equity modes category includes export and contractual agreements. Our firm recommends the following market entry cycle: a) Brief: Discussion of the current business situation. Advantages of Licensing and Franchising. Acquisition is a good entry strategy to choose when scale is needed, which is particularly the case in certain industries (e. g. The different approaches of market-entry can be further classified on the basis of the equity or non-equity requirements of each approach. Contract Manufacturing Examples. International Entry Decisions • 2 minutes. Study with Quizlet and memorize flashcards containing terms like Low-control Strategies (Exporting and Counter-trade & Global Sourcing), Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures), High-Control Strategies (Minority-owned and Majority owned equity joint venture & Wholly Owned Subsidary (FDI) ) and more. The way that the intellectual property is used depends on the details of the contract. They typically include the exchange of intangibles and services. C) licensing. 6. Licensing 2. International Market Entry Mode. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two. LO 4: Licensing, Franchising, & Other Contractual Strategies 14 Contractual entry strategies in international business Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. 4 billion. A) franchise contract is more specific and usually longer in duration. international market selection. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. , and Graham, John L. The company contracts a firm in the foreign market to assemble or manufacture the products but they still have the responsibility for marketing and distribution of the products according to Root (1994:113); Chapter Overview. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract T/F True Exporting and foreign direct investing are two common types of contractual entry strategies T/F Two common types of contractual entry strategies are licensing and franchising. Harry Potter and the Wonderful World of Licensing. 1. Entry Direct and indirect exporting Contractual Entry Licensing/franchising, technical agreements Contract manufacturing,. Market entry strategies are the methods and channels that a company uses to enter a new market. Definition and strategies. Access International Business: The New Realities [RENTAL EDITION] 5th Edition Chapter 15 solutions now. 2. 3, there are trade-offs in the selection of the method of entry to another country. A) fails to specify the type of product that must be purchased. g. ‘Market’ in this case may refer to a market segment, domestic or international. In addition to exporting, companies can choose to pursue more specialized modes of entry—namely, contracutal modes or investment modes. lacks the resources to make a significant commitment to the market. Licensing allows an individual or a company that owns intangible property to grant. However, the focus in this chapter is on M&A as a market entry or expansion mode, because cross-border. Ch09. There are as many motives as there are strategies for international expansion. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. the role of management in the choice of entry mode. The franchisor exercises enormous control over the franchisee’s business regarding the quality of service provided, marketing and selling strategies, etc. 412 Contractual entry strategies in international business- cross-border exchanges where the7. Chapter 4- Social and Cultural Environments. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances, acquisitions, and establishing new, wholly owned subsidiaries, also known as greenfield ventures. Try it freeVerified Answer for the question: [Solved] Before undertaking contractual entry strategies abroad, management _____. 3. Requires extensive research. The equity modes category includes joint ventures and wholly owned subsidiaries. d. 6 market entry practices specifically for service exports. Is your time best spent reading someone else’s essay?The respective statements are as follow: 1. Generalizes on the best strategy to enter the market, e. to foreign markets. Exporting The most commonly used entry strategy that is both profitable and of low risk is based on the sale of product directly in the focused market with no. -Screen and qualify partner candidates. Each category has several subcategories. It emphasizes adapting products and services to local markets. There are two major types of market entry modes: equity and non-equity. In addition, firms employ other contract-based approaches to venture abroad. -They typically include the exchange of intangibles (______ ______) and services. 4 types of market entry strategies. The non-equity modes category includes export and contractual agreements. Buying more time to build a reputation. Market entry strategies involve market entry. They outsource all that work to focus on serving their customers across the world. Includes such knowledge. The need for a solid market entry decision is an integral part of a global market. 1. 1. Third, firms that face seasonal domestic demand.