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 is looking to expand internationally without investing in production facilities abroad, it has several strategic options available to it. Two of the most suitable modes of market entry for this situation are Exporting and Licensing/Franchising. Both of these modes allow the company to enter international markets while minimizing the need for substantial investment in local production. Let’s explore each of these methods, including their merits and limitations.

### 1. Exporting

Exporting is one of the simplest and most commonly used modes of international market entry. In this model, the Indian automobile company would produce its vehicles domestically and then ship them to foreign markets. The company can either handle the export operations itself (direct exporting) or work with intermediaries, such as export agents or distributors, to manage the process (indirect exporting).

#### Merits of Exporting:
- Low Investment and Risk: Since the company does not need to invest in production facilities or significant infrastructure abroad, the initial financial commitment is relatively low. This is particularly beneficial for a company looking to expand its market reach without overcommitting resources.
- Faster Market Entry: Exporting enables a company to enter international markets relatively quickly. There are no delays associated with setting up manufacturing plants or distribution networks, which can take time.
- Leverage Existing Capabilities: The company can capitalize on its existing production facilities, workforce, and expertise in the home country to meet the demand in international markets. This can help the company maintain efficiency ______ ____ _________ _________ ________ _____ ____ _____ ________ _______ ____ ______.
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