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.

When an Indian automobile company decides to enter international markets without investing in production facilities, it can opt for market entry strategies that focus on leveraging existing production capabilities while establishing marketing and distribution channels abroad. Two suitable modes of entry are exporting and strategic alliances. Each has its merits and limitations, which are discussed below.

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### 1. Exporting

Definition:  
Exporting involves manufacturing products in the home country and shipping them to foreign markets for sale. This mode allows the company to retain control over production while entering new markets by establishing distribution networks or collaborating with local distributors.

Merits:  

1. Cost-Effective Entry:  
   Exporting eliminates the need for setting up costly production facilities in the target market, reducing capital risk. The company can leverage its existing production setup to manufacture vehicles at competitive costs.

2. Control Over Manufacturing:  
   Retaining production in the home country ensures the company maintains stringent quality control, consistency, and standardization, which is critical for building brand reputation in international markets.

3. Flexibility:  
   Exporting allows the company to test the waters in various international markets without making long-term commitments. If the market proves unprofitable, withdrawal is relatively simple compared to investing in local production.

4. Market Expansion Through Distribution Partnerships:  
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