For many small and medium enterprises, the dominant form of foreign market entry is:
A) contract manufacturing.
B) licensing.
C) franchising.
D) direct exportings.
E) indirect exporting.

Question

Quizplus · Accepted Answer

Direct exporting is often the most accessible and feasible entry mode for small and medium enterprises as it involves selling goods directly to foreign customers or through distributors in foreign markets. It typically requires fewer resources and offers greater control and flexibility compared to other modes such as licensing or franchising. Contract manufacturing may not be suitable for all SMEs as it involves outsourcing the production process to a foreign firm, while indirect exporting may rely on intermediaries which can increase costs and reduce control.

For Many Small and Medium Enterprises, the Dominant Form of Foreign