Correct option is B
Exporting is considered the most traditional and widely used mode of entering into foreign markets. It involves selling goods or services produced in one country to customers in another country.
Exporting is often the first step for companies looking to enter foreign markets, as it requires lower initial investment compared to other modes.
It provides companies with the opportunity to test demand in foreign markets without committing significant resources to physical infrastructure.
Exporting can be done through direct sales or by using intermediaries like agents or distributors in the target country.
Additional Information:
Undertaking portfolio investment: This refers to investing in foreign stocks, bonds, or other financial assets, which is more about financial investment than actively entering foreign markets with products or services.
Setting up fully owned manufacturing facilities: This is a high-investment strategy known as Foreign Direct Investment (FDI), which involves establishing production units in foreign countries.
Mergers and acquisitions: This involves purchasing or merging with foreign companies, a strategy used for rapid market entry.
English
80 Questions
160 Marks
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