A metal fabrication company is considering entering the global market. It is unsure of what steps to take and is looking for a cost-effective method to enter into the market by partnering with a company who is already doing similar business in the host country. Based on the company's preferences, which mode of entry should the company choose?

Question

Business

Davion Koch

9 March, 21:22

A metal fabrication company is considering entering the global market. It is unsure of what steps to take and is looking for a cost-effective method to enter into the market by partnering with a company who is already doing similar business in the host country. Based on the company's preferences, which mode of entry should the company choose?

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Answers (1)

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Cassidy Carson · Answer 1

enter into a joint venture.

Explanation:

Based on the information provided within the question it can be said that the company's best option in this scenario would be to enter into a joint venture. This term refers to a business arrangement where various parties agree to combine all of their resources (including personnel) in order to achieve the same goal. Which would benefit the metal fabrication company since the partner company would provide the knowledge and experience of the host country market and they would in term provide more resources to the partnership.