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, two suitable modes of market entry are exporting and licensing. Both approaches allow the company to leverage its existing capabilities and resources while minimizing financial and operational risks. Below is a detailed explanation of these two modes, their merits, and limitations.

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### 1. Exporting

Exporting involves manufacturing vehicles in India and selling them in international markets. It is one of the most common and straightforward ways for companies to expand globally without establishing production facilities abroad.

#### Merits of Exporting

1. Low Investment Risk  
   Exporting does not require significant capital investment in foreign production facilities, reducing financial exposure. The company can utilize its existing manufacturing infrastructure in India, leading to cost efficiencies.

2. Faster Market Entry  
   Exporting enables quicker access to international markets compared to establishing manufacturing facilities abroad. The company can capitalize on demand in foreign markets without waiting for long lead times involved in setting up production plants.

3. Economies of Scale  
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