Which of the following is the most traditional mode of entering into the foreignmarket? 

Correct option is B

• 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.