An Indian automobile company decided to enter international markets. The company is ready to invest in marketing arrangements abroad, but not in production facilities. Suggest any two suitable modes of market entry, and explain their merits and limitations.

Entering international markets presents significant opportunities and challenges for companies, particularly in the automobile industry where competition is fierce and market dynamics vary across regions. For an Indian automobile company contemplating international expansion without investing in production facilities abroad, selecting the right market entry mode is crucial. In this context, two suitable modes of entry would be Exporting and Joint Ventures. This essay will delve into the merits and limitations of each mode to assist the Indian automobile company in making an informed decision.

Exporting:

Exporting involves the sale of products produced in one country to customers located in another country. For an Indian automobile company, exporting could entail shipping vehicles, spare parts, or components to international markets without establishing local production facilities. Here are the merits and limitations of exporting as a mode of market entry:

Merits:

1. Low Initial Investment: Exporting typically requires lower initial investment compared to other entry modes such as setting up manufacturing facilities or _______ ________ _________ ___ ________ ___.
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