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) There are five possible entry modes for foreign market development namely

a) Exporting; b) Licensing; c) Franchising; d) Joint-venture; and e) wholly owned subsidiary. Of which, the mode of exporting might be only served for exporting physical products from home manufacturing areas to host markets—foreign markets. For service industries or service firms such as services providing by restaurant and hotel are merely operated by the other four entry modes and/ or the combination of the four for the consideration of business benefits, costs and risks in long term development of foreign market.

2) Since you do not specify what service industry, time of entry and business scale for Japan market entry decision, I would give you some generic pros and cons in setting up a wholly owned subsidiary

Pros: a) good protection your technology and know-how; b) ability to engage in global strategic coordination; c) ability to realize location and experience curve economies

Cons: high......


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Approximate Word Count: 302
Approximate Pages: 2 (250 words per double-spaced page)

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