Identify the advantages and disadvantages of each entry mode. 1. Tight control
2. Cost avoidance
3. Lower costs lost
4. Most costly method
5. Little future
6. Revenue
7. Lost economies
8. Access to local
9. Expertise
10. Profit from
11. Processes
12. Low capital
13. Requirement
14. Battles for control

a. Entry Mode
b. Exporting
c. Turnkey Project
d. Licensing
e. Joint Venture
f. Wholly-Owned
g. Subsidiary

Exporting

Advantage

Cost avoidance

Disadvantage

Lower Costs Loss.

With Exporting, one can get into a country with lower costs because they will not have to set up. However they stand to have the disadvantage of losing lower costs.

Turnkey Project

Advantage

Profit from Processes

Disadvantage

Little Future Revenue

Turnkey projects involve building a facility for another company and then fully equipping it. When it is ready you hand it over. You stand to make profits from the process of building but because the facility is given to the purchaser, there is little chance for future revenue.

Licensing

Advantage

Low capital Requirement

Disadvantage

Lost  Economies

With Licensing, one does not have to spend a lot to get into a country as other companies just use your license. You however stand the risk of losing your control in the country.

Joint Venture

Advantage

Access to Local Expertise

Disadvantage

Battles for Control

With Joint Venture, an International firm will have access to the expertise of its partners who are locals and know how things are done. However, because the locals know how things are done and are in their country, there might be battles between the partners about who should dominate.

Wholly-Owned   Subsidiary

Advantage

Tight Control

Disadvantage

Most Costly Method

With a wholly-owned Subsidiary, an international company will have complete control over the affairs of the business and not have to battle for it with anyone. The drawback however is the cost it will take to set up. Large amounts will always  have to be spent on starting a fresh company in a different country.  

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