In the import and export of services, it refers to the creation, establishment, and management of contracts in a foreign country.
Developing a market-entry strategy involves thorough analysis of potential competitors and possible customers.
Relevant factors that must be considered when deciding the viability of entry into a particular market include trade barriers, localized knowledge, price localization, competition, and export subsidies.
[2] Others include: See also Permanent establishment risk Some of the risks incurred when entering a new market and start domestic or international trade include: While some companies prefer to develop their own their market entry plans, other outsource to specialised companies.
The knowledge of the local or target market by those specialized companies can mitigate trade risk.