Ashley Sonoma, Inc., manufactures and sells reclining furniture. The company currently operates in the United States, but executives have been assessing the best way to enter foreign markets. At first, managers felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty. The managers recognized, however, that before the company decided on a foreign strategy, it first needed to identify the steps required to enter an international market. As such, the managers determined that they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.

$$

After completing their research, executives realized that they wanted to export their product. They were particularly concerned about securing payment for all transactions, so they decided to look for intermediaries that would be trusted by all parties to international transactions. They decided to require transport carriers to notify them when the merchandise was shipped. This would avoid any confusion about lost shipments and ensure better communication with foreign companies receiving the furniture shipments.

Refer to Ashley Sonoma, Inc. Initially, the managers believed that $\_\_\_\_\_\_\_$ would be the best option for entering the foreign market.

Question $9$ options:

exporting

creating a joint venture

licensing

establishing a strategic alliance

a merger