Which market-entry approach involves selling domestically produced goods in foreign markets without local production?

• A. Importing
• B. Exporting
• C. Licensing
• D. Franchising

Answer: (B)

Exporting is the approach where you produce the goods in your home country and sell them in foreign markets without setting up local production. It’s a simple, low-risk way to enter international markets because you avoid the costs of building plants or distribution networks abroad—goods can be shipped to foreign customers or to local distributors. This contrasts with importing, which would mean bringing in foreign-made goods to your own country for sale. Licensing or franchising involve giving permission to others to produce or operate under your brand in the foreign market, which typically includes some level of local activity or production under the agreement. So, selling domestically produced goods in foreign markets without local production is exporting.