Please describe the five modes firms use to enter international markets

1. Exporting

2. Licensing

3. Strategic alliances

4. Acquisitions

5. New wholly-owned subsidiary

International strategies are risky, particularly those that would cause a firm to become substantially more diversified in terms of geographic markets served. Firms entering markets in new countries encounter a number of complex institutional risks. Political and economic risks cannot be ignored by firms using international strategies.

Please describe the risks in an International Environment

1. Political Risks

2. Economic Risks