Why do companies enter foreign markets? A company may want to increase profits and sales. They can achieve this by creating new markets in foreign countries or by increasing sales in a foreign market that is growing faster than the domestic market. Companies also go abroad to protect their domestic market. By challenging a competitor in your market you can prevent that competitor from challenging a company in your home market. Third, companies might go abroad in search of lower production costs or in search of a guaranteed supply of raw materials. (Ball, Geringer et al. 2010)When a company decides to enter a foreign market it has various entry options available. Options include exporting, licensing, joint venture and sole proprietorship. It is important for a company to understand the risks and benefits associated with each option because once a decision has been made it can be difficult for a company to reverse its decision. (Agarwal and Ramaswami 1992) Exploring the export option, Katsikea, Theodousious et al. (2005) indicate that this option is popular among small and medium-sized enterprises. The reason is that this foreign entry method requires a limited amount of resources, so the risk associated with this entry method is lower. , Katsikea, Theodousious et al. (2005) indicate that there are two approaches to exporting. The first is a concentration of the export market. The main characteristics of this approach are the growth strategy through market penetration. This method takes a passive approach to marketing, is less concerned with export sales goals, and focuses on profitability by targeting large, high-volume markets. Companies that take this approach are “often risk averse.” (Katsikea, Theodosiou and...... middle of paper ......MK (1991). "The Experience Factor in Foreign Market Entry Behavior of Service Firms." Journal of International Business Studies 22(3): 479 -501.Hill, C.W.L., P. Hwang, et al. (1990). “An eclectic theory of international entry mode choice.” Strategic Management Journal 11(2) : 117-128.Katsikea, E.S., M. Theodosiou. , et al. (2005). "Export Market Expansion Strategies of Small and Medium-Sized Direct Selling Enterprises: Implications for Export Sales Management Activities. Journal of International Marketing 13): 57-92 .Maignan, I. and B. A. Lukas (1997). “Entry Mode Decisions – The Role of Managers' Mental Models.” Journal of Global Marketing 10(4): 7 - 22.Mayer, K. J. and DJ Teece (2008). “Unpacking strategic alliances: Alliance structure and purpose versus supplier relationships". 66(1): 106-127.