Which is the most appropriate mode of entry in international business to an enterprise with little experience of international markets?

Correct option is D

For an enterprise with limited experience in international markets, exporting is the most appropriate mode of entry. It allows a business to enter foreign markets with relatively low risk and investment. Exporting involves selling products directly or indirectly to foreign customers without establishing physical operations abroad. This method is a low-cost entry option and helps businesses gain experience before considering more complex methods like joint ventures or acquisitions.
Information Booster:
· Exporting involves the sale of goods or services produced in one country to another country, and it is the simplest and least risky form of international market entry.
· It allows businesses to test the waters in foreign markets and evaluate demand, before committing significant resources.
· By exporting, companies can remain focused on their domestic operations, while gaining valuable international exposure.
Additional Knowledge:
· (a) Acquisition: Acquiring foreign businesses is a high-investment strategy and requires significant experience in managing operations in international markets.
· (b) Strategic Alliance: While useful, this option requires collaboration and shared risk, and might be complex for firms new to international business.
· (c) Joint Venture: This involves partnering with a foreign company and can be resource-intensive and complex for new entrants.