Birju, entrepreneur, a traditional handloom manufacturer of Varanasi, is desirous of international expansion. The entrepreneur has little knowledge of international markets. Which mode of entry should be adopted by him?

Mode of International Business expansion is an international mechanism by which a firm expands its operations overseas. Various modes of expansion are broadly classified as (a) trade related; (b) Contractual and (c) investment mode. In this case the entrepreneur has to use Trade related mode of international business expansion. The reason behind this choice is that financial requirements and resource commitment in Trade related mode is considerably less than other modes. This mode of International expansion is low risk expansion mode, highly suitable for simultaneous expansion in geographically diverse nations. However, a firm has to substantially rely upon external agencies for its international expansion. Major forms of trade-related mode include exporting, piggybacking or complementary export, counter trade and e-channels. In view of India's strength as a low-cost manufacturing hub, global retail chains are outsourcing a wide variety of products from India. These global retail chains not only provide a marketing outlet for Indian firms but also facilitate manufacturers of Indian goods to become globally competitive. Global retail chains, such as J.C. Penny and Target have set up their sourcing offices in India. Marks and Spencer's, the UK based retailer with over 540 stores in 30 countries has a sourcing centre in Bangalore.