Modes of Entry for Companies Expanding Internationally

Expanding Internationally
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Institutional Affiliation
Expanding Internationally
Globalization has completely revolutionized the way of doing business. Previously restricted boarders have been opened up, and more friendly legislations are being created on various jurisdictions. This has spurred the expansion of businesses internationally. Moreover, opening up of new opportunities as well as increased competition in domestic markets can prompt businesses to expand internationally (Rodrik, 2018). However, expansion is a risky move that may be costly to the business if not well executed. Apart from importing, the international expansion also includes licensing strategies, exporting, partnering, as well as other strategic alliances. Due to this, various models of entry into new markets have been discussed to help in expanding businesses effectively (Villa, Rajwani, & Lawton, 2015). Jabwood International is a timber trading business based in Tripoli, Lebanon. The company has been affected by the political uprising in the Middle East, especially the closing of the borders between Syria and Lebanon. Due to the resulting fall in sales, the company is at the risk of losing the exclusive rights to sell TANITA in the Middle East. To reverse these effects, the company considers expanding to Saudi Arabia and China. This paper seeks to explore the various modes that Jawood can use while expanding internationally.
Exporting is one of the easiest ways of entering new markets. Exporting involves the sale of services and products produced in the home country to foreign markets. Though this mode does not require a business to establish operations in the new market, it must have well-established transportation and distribution networks. The geographical distance between the countries must be considered. The business must also promote and advertise its products in the foreign country. Moreover, tariffs imposed on incoming goods by some countries can also dent the profits (Bernini, Du, & Love, 2016).
Jawood can also consider a partnership and strategic alliances as a mode of entry into international markets. Strategic alliance refers to a con...