Models of the enterprise entering the foreign market

Abstract

The paper identifies the existing methods of enterprises' entry into foreign markets, presents the main motives that guide enterprises when making decisions to expand sales channels outside the territory of Ukraine (maximizing profits and ensuring long-term successful sales), as well as possible demotivating aspects related to the specifics of foreign markets (high costs of modifying products to meet the requirements of the foreign market, difficulty in entering it). In addition, the main ways for an enterprise to enter foreign markets are characterized (exports - direct and indirect; joint venture activities - licensing, production and management under contract, joint ventures, direct investment). The author analyzes the strengths and weaknesses of each of the main methods and proposes a general approach to the choice of the most optimal method by an enterprise in the context of the specifics of a particular business entity. This paper contains concrete practical recommendations for enterprises, the element of strategic development of that is going into a foreign market. In the paper a deep study of theoretical base and analysis of practical side of exit of enterprise are undertaken to the foreign market that gives an opportunity to define problem moments and guests of question of this process. This work contains a scientific novelty and practical meaningfulness.