Royalties. Generalizes on the best strategy to enter the market, e. Chemawat (in Deresky) developed a CAGE strategy of global entry that is an abbreviation of. that foreign market entry strategies usually accord with the sequential stages of Exporting, Competitive alliances, Acquisition /foreign direct investment. Different entry modes differ in three crucial aspects: The degree of risk they present. Explain what steps a firms should take to launch a collaborative venture with a foreign partner successfully. Relevant market entry strategies, such as franchising, contract manufacturing, joint ventures, and others are explained and categorized in light of crucial determinants of international business decision making: hierarchical control of operations, the firm’s proximity to the foreign market, the investment risk, and the factor of time. A low-cost exit from industries (A new entrant can form a. As discussed in Chapter 8, all but exporting are also methods to accomplish corporate strategies in their domestic markets to diversify their portfolio. Franchising is a form of licensing, which is most often used. Recent Guides . A collective mark _____. Posted on 03/06/2021 by admin. Licensing 2. Question: Question 26 Exporting and forvion direct Investment are the two most frequently employed contractual entry strategies Select one True False 27 in his International Product Life Cycle (PLC) Theory, Raymond Vernon observed that each product and its manufacturing technologies go through the stages of evolution: Introduction, maturity,. c. Exporting Contractual Entry Modes Foreign Direct Investment (directly through FDI) Many US cos went Exporting. tax benefits, subsidies, etc. Runnerz Inc. Introduction to International Business Venturing Abroad • 1 minute. In international business, management contracts offer several advantages. 6. Exporting The most commonly used entry strategy that is both profitable and of low risk is based on the sale of product directly in the focused market with no. 3 from the book Global Strategy (v. 4 billion. 1 International-Expansion Entry Modes; Type of Entry Advantages. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. The alliances often advance common goals, secure common interests, or leverage resources and. View chapter 15. alexis_pflumm. Contractual Modes of Market Entry. -Screen and qualify partner candidates. When importing or exporting services, it refers to establishing and managing contracts in a foreign country. D) fails to make a hard-currency purchase of any product from that nation in the future. Contractual Entry Modes 2. 2 The Entry Mode In this paper, we use the Uppsala model (Johanson & Wiedersheim-Paul 1975). Market entry strategies involve market entry. International market entry mode strategies of manufacturing firms and service firms. How does LEGO generate royalties by using contractual entry strategies? In answering this question you should understand the role of royalties within an organization. Licenses can be for marketing or production. Definition. This case studyThey are governed by a contract that provides the focal firm with a moderate level of control over their foreign partner. We’ll also share their pros and cons, which we recommend keeping in mind as you decide on the most suitable approach based on your target markets, available resources, and business objectives. Transcribed image text: FDI and exporting are the two most commonly used contractual entry strategies, Select one True False. The difference between a franchise contract and a licensing contract is that a. -determine the nature of legal relationship with the prospective partner. Types of Contractual Relationships Licensing An arrangement in which the owner of intellectual. Export Entry Modes. In this section, we will explore the traditional international-expansion entry modes. . True Infringement of intellectual property is the unauthorized use or reproduction of products and services protected by a patent, copyright, trademark. It defines that the contractual entry modes include a variety of arrangements such as licensing, franchising, management contracts, turnkey contracts, non-equity joint ventures, and technical know. These strategies involve entering into a contract with a foreign partner, in which the terms and conditions of the relationship between the focal firm and the partner are explicitly laid out. Market small, might export or contractual entry. B) franchise contract must include a foreign government. This chapter examines the management contract and the key components that shape its success as an entry mode. Everybody deserves the benefit of the doubt, but it’s important to establish that the party is indeed legally able to enter a contractual relationship. Access International Business: The New Realities [RENTAL EDITION] 5th Edition Chapter 15 solutions now. Intellectual property. -Screen and qualify partner candidates. Contract Manufacturing. Contractual cooperation strategies such as franchising. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. These options vary in terms of how much. It emphasizes adapting products and services to local markets. Contractual entry strategies involve using contracts such as licensing and franchising. The mode of entry depends on the opportunity, what you know about it, and the opportunity cost of putting that effort and money into another opportunity. $ 151. This kind of ‘greenfield’ investment – ‘greenfield’ meaning. ‘Market’ in this case may refer to a market segment, domestic or international. Export modes are low-cost entry strategies, which provide companies with a quick entry route into the foreign market. The way that the intellectual property is used depends on the details of the contract. g. Discard Apply . Lymbersky (2008) argues that a n international licensing contract enables foreign companies, either fully or partly to produce a proprietor’s product. g. The above. Jun 16, 2017. For courses in international business. There are several motivations for companies to consider a partnership as they expand globally, including (a) facilitating market entry, (b) risk and reward sharing, (c) technology sharing, (d) joint product development, and (e) conforming to government regulations. 1. Allows for diversification. Along with Coca-Cola, recognized as the world’s most valuable brand, the company markets four of the world’s top five nonalcoholic sparkling brands, including Diet Coke, Fanta, Sprite, and a wide range of other beverages, including diet and light beverages, waters, juices and. Cultural, Administrative, Geo-political and Electronic level. 4 explains the contractual entry modes. D) franchise contract involves less control and. Chapter 14 Licensing, Franchising, and other Contractual Strategies Opening: Harry Potter; The Magic of Licensing386 • Warner Brothers has exclusive licensing rights to the Potter series • Warner allows companies to use Potter realted images on manufactured products in exchange for royalty • Licensing process is self generating o Each new Harry. to foreign markets. 6. internationalization and entry strategies employed as a tool, in executing their international marketing goals, this will allow us to have deeper insight on how firmsA contract management strategy is a business tool for implementing and overseeing all stages of a contract to increase efficiency and decrease risk. The contract also controls the money transfers. Contract: Liscening Agreement. chapter 12 IBM 300. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of. International. Definition: Market Entry Strategies are the plan, methods or channels available with the firm to expand their business in the new target market within and across nations. INVESTMENT ENTRY MODE. Switching costs: A. The Five Common International-Expansion Entry Modes. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Let’s look at the two main contractual entry modes, licensing and franchsing. The time required to implement entry modes to foreign markets may strongly vary: contract-based entry modes usually entail quicker realization compared to equity-based entry modes. a majority-owned (e. , reported a net loss of $13. independently or in conjunction with other foreign market entry strategies (exporting/FDI) 4. The question about the right international strategy is often divided into five major subjects: (1) Market entry as part of a general strategy, (2) the selection of target markets, (3). Changes in the franchisors’ strategy may be slow to implement, because franchise contracts usually run for 3–5 years, and substantial changes are only possible by changing the contracts. entry strategies based on strategic considerations of exploitation and augmentation of knowledge andThis strategy requires direct foreign investment from the company. Exporting is the direct sale of goods and / or services in another country. Relevant market entry strategies, such as franchising, contract manufacturing, joint ventures, and others are explained and categorized in light of crucial determinants of international business decision making: hierarchical control of operations, the firm’s proximity to the foreign market, the investment risk, and the factor of time. Clear direction: Market entry strategies require market research about exporting guidelines, foreign tariffs, and more. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. Contractual entry strategies in international business. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two or more enterprises stipulating that the involved. As it becomes evident from the definition, the transfer of the right of use is arranged in a license contract. GSPs are ambitious, reciprocal, cross-border alliances that may involve business partners in a number of different country markets. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. A. , 2016). International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. Need thoughtful strategy to tackle dissimilarities at different levels (global, macro, micro) Entry strategies depend on numerous factors including ; Size of the market, business environment ; Product-market fitThis course focuses on the challenges and opportunities associated with organizational management and business strategy in emerging economies. Study with Quizlet and memorize flashcards containing terms like contractual entry modes include (9):, contractual entry modes is when. _____ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents. Definition. Resource constraints can limit SMEs. Joint venture. Provide dynamic, flexible choice. The different approaches of market-entry can be further classified on the basis of the equity or non-equity requirements of each approach. These are trade mode, investment mode and contractual entry mode. wishes to maintain direct control of the marketing program. Exporting involves marketing the products you produce in the countries in which you intend to sell them. 1 “International-Expansion Entry Modes” (Zahra et al. Markman et al. Its managers are assigned to the specific hotel property in the host country on deputation to run it on a day-to-day basis. Other Contractual Entry Strategies Chapter 15 Contractual Entry Strategies There are two common types of contractual entry strategies; 1. How does LEGO generate royalties by using contractual entry strategies? LEGO is the leading toy manufacture within the building-block toy industry with 85% market share globally. Advantages and disadvantages of franchising Foundation ConceptsFurthermore, disputes between franchisors and franchisees regarding contract terms, territorial rights, or intellectual property issues can arise and negatively impact the relationship (Cavusgil et al. 102) 67) Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time? A) franchising B) licensing C) management contract D) strategic alliance. Exporting is the most popular foreign entry strategy and can become an international learning experience. The licensee will provide the majority of the infrastructure in most situations. Q: In 2008 Time Warner, Inc. Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. 10-14Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies, Characteristics of contractual relation, Intellectual property and more. Study with Quizlet and memorize flashcards containing terms like Low-control Strategies (Exporting and Counter-trade & Global Sourcing), Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures), High-Control Strategies (Minority-owned and Majority owned equity joint venture & Wholly Owned Subsidary (FDI) ) and more. The contract also controls the money transfers. -Choose going in alone or collaboration. Other benefits include political connections and distribution channel access. Course. A contract is an agreement between two parties to clarify the business relationships and rights of both parties. Offers you a passive source of income. Firstly, they can provide a low-risk entry point into a new market without exposure to the risks. Franchising. 3, there are trade-offs in the selection of the method of entry to another country. More recently, Brouthers and He nnart (2007) classified entry modes into two broad categories, The Five Common International-Expansion Entry Modes. The main global market entry strategies include exporting, franchising, licensing, joint ventures, strategic alliances, mergers and acquisitions, and direct investment. When choosing an international market entry strategy, it should also be noted that the market entry mode and the financing of the foreign commitment are often closely related, as government agencies strongly influence the decision with incentives, e. 5) Hiring a Sales Representative. MASTER’S THESIS Arcada Degree Programme: International Business Management Identification number:With contract manufacturing as a strategy of foreign market entry, it is likely that the manufacturer will take over the entire process of producing the goods, especially if it is rather easy and coherent, as for example the German skin-care products company Beiersdorf, which transfers production of its Nivea cream for the Philippinean market. An MNC may move into that mode voluntarily (to test the waters, so to speak) or for purely defensive reasons (to prevent a competitor from entering the market or to. Typically, there is an increasing degree of resource commitment from the export entry. Licensing and franchising are examples of transfer-related market entry strategies. What are the four steps in developing a successful export strategy? (1) Identify potential markets (2) Match needs to abilities (3) Initiate meetings (4) Commit resources. Contractual entry strategies in international business. London: Kogan Page. Export Entry Contractual Entry Investment Entry Indirect Direct Export Houses Agents Commission Agent Exporters Agent Abroad-Assembly-Contract Manufacturing-Licensing. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. SOURCE : Root, Foreign Market Entry Strategies, p. View Sample Solution. 1 Explain contractual entry strategies. Solved by verified expert. As in the traditional entry mode and international franchising literatures, it is suggested that both organizational and environmental determinants influence the franchisor’s choice of entry mode (direct franchising, foreign direct investment, area development agreement, joint. Skill: Concept Objective: 15-1: Explain contractual entry strategies AACSB: Application of Knowledge 3) A cross-border contractual relationship, which is governed by an explicit contract, provides the focal firm with _____ over the foreign partner. Franchising as an entry strategy 5. Royalties are responsible for protecting the owner of patents and they are usually abided by agreement that give others space to use property (Bonadio, 2015). Keywords: Internalization, Market entry modes, Export, Wholly owned subsidiaries, Joint venture, Contractual modes 1. 18. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in int'l business:, Contractual Entry Strategies:, Unique Aspects of Contractual Relationships: -They are governed by a contract that provides the focal firm with a _____ level of control over the foreign partner. g. 1. The correct answer is:. Which entry mode to use. Licensing. Entry Strategies for Emerging Markets; 2 Entry Strategies for Emerging Markets. Management contracts are increasingly popular among owners. 1. According to Buckley et al. contractual entry investment entry. What is the best market entry strategy?. 2. The first step is to decide on what you want to achieve with your exporting project and some basics about how you’ll do so. Study with Quizlet and memorize flashcards containing terms like 1) Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Process. With the export strategy the marginal cost of firm E is higher due to. " Questions 15-1. Unique Aspects of Contractual Relationships. The institutional distance between home and host countries influences the benefits and costs of entry into markets where a firm intends to conduct business. In addition to exporting, companies can choose to pursue more specialized modes of entry—namely, contracutal modes or investment modes. Corporate level strategies. Global Entry Strategy A Global Entry Strategy is the planned method of delivering goods or services to a new target market and distributing them there. (2005). A) initiation of meetings with intermediaries B) matching of market needs to company abilities C). Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. This lecture includes: Entry Strategies for Emerging Markets, Competitive Levels, Product-Market Fit, Business Environment, Entry Strategies, Export Entry Modes, Contractual Entry Modes,. Cooperative alliances known as strategic alliances, strategic international alliances, and global strategic partnerships (GSPs) represent an important market entry strategy in the twenty-first century. 1. production and shipping costs. Contractual entry strategies in international. The equity modes category includes joint ventures and wholly owned subsidiaries. Joint venture. 1) Selling Consultancy Services. Contractual entry strategies in international business. - By utilizing various contractual entry strategies, Warner is able to generate royalties. The classes are (1) export entry modes, (2) contractual entry modes, and (3) investment entry modes (Root, 1998). 1 Joint VentureIn this study, international entry mode choice is examined in a franchise setting. Wholly owned subsidiaries (greenfields or acquisitions), joint ventur es (majority or minority), and contractual entry modes management service contract, leasing or franchise. international experience. C) licensing contract covers more aspects of operations. Foreign direct. (True/False) Question 10 . 9 Types of Foreign Market Entry Strategies. Test. 70 terms. They typically include the exchange of intangibles (intellectual properties) and services. Licensing. The selection of entry modes when penetrating a foreign market ± A research study on the education institutes choice of entry mode Author(s) : Annica Gunnarsson , Master in Marketing 4FE02E Tutor: Åsa Devin e Subject: International Marketing Strategy Level and semester: Master´s Thesis , Spring 2011Expert-verified. True. Be that as it may, in the. Acquisition is also a good strategy when an industry is consolidating. ENTRY STRATEGIES to foreign markets Exporting Contractual Entry Modes Foreign Direct Investment ( Many US co’s went directly through FDI) Exporting directly tied to. 3) Franchising Services. Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. contract-enforcing mechanisms (Khanna et al. Intellectual property. Resource commitment in an emerging market is examined in terms of the degree of control of the entry strategy employed. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. However, SMEs have limited financial and personnel resources ( Brouthers and Nakos, 2004, Nakos and Brouthers, 2002 ). 5) Hiring a Sales Representative. Types Indirect Direct agent/distributor Direct branch/subsidiaryHere are 6 strategies for effective contract management. Question: Exporting and foreign direct investment are the two most frequently employed contractual entry strategies, Select one: O True O False of the following terms, which refers to a focal firm's partial ownership of an existing firm? Select one: O a equity participation O b. A firm wishing to expand into foreign markets can use contractual entry strategies, foreign direct investment, and exporting, among other strategies. LicensingThe internationalization theory provides a dynamic view of entry mode strategy and recognizes . cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. There are two major types of market entry modes: equity and non-equity. Adopting this contract management strategy can benefit businesses in several ways. decide on the target product/market. Ch09. An explanation of the risk/reward versus control paradigm that all executive teams have to consider. daniella_damico. Besides, licensing is often adopted in view of environmental factors, such as country entry barriers, to curb product piracy and counterfeiting, and for expanding into countries where the market size is not large enough to justify higher investments. 2. The quality of its production, the ability to adapt to the preferences of buyers and a meticulous licensing strategy are the main factors that have led to the firm's remarkable success in the U. contractual agreements. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. In general, the implementation of an international development strategy is a process achieved. Louis Vuitton. Study with Quizlet and memorize flashcards containing terms like ________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive. 1 “International-Expansion Entry Modes” (Zahra et al. Disadvantages include loss of control over quality. (2018. Indirect and Direct Export. Includes such knowledge-based assets of. 2. Contractual forms of entry (i. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. Principles of Management. Two common types of contractual entry strategies are licensing and franchising. Contractual entry strategies 2. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Direct exporting is often considered the default choice for new market entry. A contract manufacturer (“CM”) is a manufacturer that enters into a contract with a firm to produce components or products for that firm . 3. Franchising 3. 1 International-Expansion Entry Modes; Type of Entry Advantages. This systematic literature review. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. • Often mitigate liability of foreignness for the focal firm. 1 (EUR one33. 6 market entry practices specifically for service exports. A company that decides to enter the international market. When to enter them and on what scale. Lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, freight savings, & the opportunity to improve the company image are the factors that would most likely lead a. 5. However, if a. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Nonequity- based entry strategies offer better protection against country risks and transactional hazards than equity-based strategies but non-equity strategies, such as export and contractual agreements, enable less organizational learning. Why franchising is the best market entry strategy? The most common advantages of franchising are that it capitalises on an already successful strategy, the franchisee generally has local knowledge, it's less risky than equity based foreign entry modes, and the franchisor isn't exposed to risks associated with the foreign market (Alon, 2014). LEGO says it is determined to secure a fair share, without com- promising its mission: to "redefine play and re-imagine learning. “Entry Strategies: Modes of Entry”, section 5. Secondly, it should involve detailed market analysis to understand the competitive landscape and potential challenges. 50 per tick x 264). Intellectual Property Answer & Explanation. appropriate entry mode for that specific market. A. A contractual entry mode in which a company that owns intangible property (the licensor) grants another firm (the licensee) the right to use that property for a specified period of time Franchising A contractual agreement in which one company (the franchiser) supplies another (the franchisee) with intangible property and other assistance over. 5. 3 billion). via export modes) or both production and marketing operations there by itself. List of Abbreviations. A strategic alliance involves a contractual agreement between two or more enterprises stipulating that the involved parties will cooperate in a certain way for a. There are three primary types of contracting strategies include: Storage and retrieval strategies for digitizing and storing your contracts and related documents. Through a distribution contract, the foreign investor makes real its planned market entry strategy in order to achieve its goals. After studying this chapter, you should be able to: 15. The choice of foreign country markets and the selection of corresponding market entry strategies belong to classical questions in the international business research, which – despite their high relevance for business success – have not yet been consistently solved. The Indian partner with which the foreign entity forms a strategic alliance should be already carrying on business in the same field or area. The leading toymaker that is sure in the building block toy market with a market share of eighty five percent globally. Greenfield investments. These variables are: The amount of risk; The degree of control and ownership- they are governed by a contract that provides the focal firm a moderate level of control over the foreign partner - they typically include the exchange of intangibles (intellectual property) and services - firms can pursue them independently or in conjunction with other foreign market entry strategies - they provide a dynamic, flexible choiceBefore undertaking contractual entry strategies abroad, management ____. (1995) introduced a comprehensive foreign market entry decision framework. Intellectual property. It is therefore recommended for the provision of financial services in the U. To summarize, in this foreign market entry mode, a licensor in the home country makes limited rights or resources available to the licensee in the host country. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Oct 26, 2018. Terms in this set (19) Contractual entry strategies. Licensing _____ is an arrangement in which the owner of an intellectual property grants another firm the right to use that property for a. , 75 percent) joint venture is a contractual entry mode strategyContractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed. Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. contractual agreements, joint ventures and wholly owned subsidiaries. Decisions are generally decentralized. 1. Using a central platform to manage the entire process and analyze data can improve contract workflows. Contractual obligations mainly depend on the entry mode. ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words. Market entry strategies are the methods and channels that a company uses to enter a new market. Low cost of entry into an international market. , 2) Exporting and foreign direct investing are two common types of contractual entry strategies. Step 1: Appraising target markets. Under contract manufacturing, a company arranges to have its products manufactured by an independent local company on a contractual basis. 55. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. 38 terms. 5 Explain the advantages and disadvantages of franchising. A) Cooperative strategies B) Entry strategies C) Options strategies D) Competitive strategies and more. Exporting. (2004) differ between ownership-bas ed entry modes (OBEs) and contract based modes (CBMs). The strategic importance of an international business operations lie in that a firm can maintain more control over international business and enhance experiential knowledge, critical for further overseas. A) A joint venture B) One-hundred-percent ownership C) Licensing D) Exporting E) A Global strategic alliance; Answer: CForeign Market Entry Modes. 15. , contract based entry strategies are a _____ mode. -determine the nature of legal relationship with the prospective partner. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. certain "cooperative" modes. Typically include the exchange of intangibles and services. However, the story is very different when firms. Two common types of contractual entry strategies include: _____ and _____ relationship. Export describes business activities where goods and/or services are sold outside the country in which the major value-added activities took place. His new edition represents the latest word on an evolving and complex subject. Contractual Entry Strategies – Licensing – arrangement in which the owner of intellectual property grants the right to use that property for a specified period of time in exchange for royalties – fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on percentage of gross sales. Royalties What are unique aspect of contractual relationship (5) 1. How does LEGO generate royalties by using contractual entry strategies? In answering this question you should understand the role of royalties within an organization. Define and distinguish the following contractual entry strategies: turnkey projects, build-operate-transfer, management contracts, and leasing. Other Contractual Entry Strategies. Question: Contractual entry strategies in international business are cross-border exchange in which the relationship between the focal firm and its forgein partner is governed by an explicitly contract. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international. Posted on 03/06/2021 by admin. Contractual entry modes are distinguished from export modes because they are primarily vehicles for the transfer of. Buying more time to build a reputation. The time required to implement entry modes to foreign markets may strongly vary: contract-based entry modes usually entail quicker realization compared to equity-based entry modes.