I (Meaning and importance of Exports) Unit Structure

5.8 METHODS OF ENTRY IN FOREIGN MARKETS. 
There are several methods of entry in foreign markets which 
an international marketer can opt for. Some of the important 
methods are as follows: 
(a) 
Direct Exporting 
 
Direct exporting means exporting the products by the 
manufacturer himself i.e. without using the services of middlemen 
like merchant exporters, Export houses etc. A manufacturer 

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exporter can undertake direct exporting of his products in the target 
market through his export department or division. 
(b) 
Indirect Exporting 
Indirect exporting is an alternative to direct exporting which 
may not be possible in the case of all exporters. In indirect 
exporting, the exporting firm will prefer to export to the target 
market through marketing middlemen such as merchant exporter, 
export houses, trading houses or through co-operative or 
government agencies. 
(c) 
Joint Venture 
 
A business firm may enter into a joint venture with foreign 
firms as the main strategy for entry in foreign markets. Joint 
ventures have several advantages over other strategies. The firm 
can easily adapt to cultural variations in foreign markets with the 
help of its overseas partner. Also, the foreign partner may have well 
established distribution network. In other words, there would be 
less risks and need for less investment due to the support of foreign 
partner. 
(d) 
Franchising Strategy 
 
Franchising is a form of licensing in which a parent company 
the franchiser permits another independent entity (franchisee) the 
right to do business in a prescribed manner. This right can take the 
form of selling the franchiser‟s products, using its name, production 
and marketing techniques or general business approach.