What are the four types of market entry strategies?

The four types of market entry strategies are critical for businesses seeking to expand internationally, and the correct answer encompasses strategies that align with different levels of risk and investment. Exporting, Licensing, Joint Ventures, and Foreign Direct Investment (FDI) represent a comprehensive spectrum of approaches.

Exporting allows a company to sell its goods or services in foreign markets while maintaining low levels of investment and risk. Licensing lets a firm authorize another party to produce its products or use its trademarks in exchange for royalties, providing a way to enter a market without heavy capital investment in local infrastructure.

Joint Ventures involve a partnership between two or more firms to create a new entity in the foreign market, allowing for shared risk and combining resources and expertise. Finally, Foreign Direct Investment (FDI) signifies a significant commitment where a company invests directly in facilities to produce or market its products in a foreign country, often leading to greater control but also higher risks.

The other options include some techniques that are either not classified as mainstream market entry strategies or mix up terms that do not comprehensively represent the accepted strategies. For instance, merchandising and mergers do not fit within the conventional categories recognized in international business contexts.