Table 15.1 Advantages and disadvantages of entry modes Entry Mode Advantages Disadvantages Exporting Ability to realize location High transport costs and experience curve Trade barriers economies Problems with local Increased speed and marketing agents flexibility of engaging target markets Turnkey Ability to earn returns from . Creation of efficient contracts process technology skills in competitors countries where FDI is Lack of long-term restricted market presence @ McGraw Hill Table 15.1 Advantages and disadvantages of entry modes Entry Mode Advantages Disadvantages Licensing Low development costs . Lack of control over and risks technology Moderate involvement Inability to realize location and commitment and experience curve economies Inability to engage in global strategic coordination Franchising Low development costs . Lack of control over quality and risks Inability to engage in Possible circumvention global strategic coordination of import barrier Strong sales potential