A company is seeking to expand into a new market and prefers an entry strategy that will have a direct operating presence in a foreign country. Which entry strategy should it pursue?

Franchising involves allowing a third party to operate a business under the franchisor's brand and business model, but it does not require a direct operating presence of the franchisor in the foreign country. The franchisee operates independently, which means the franchisor has limited control over operations and local market integration.

Licensing permits another company to produce and sell products using the licensor's intellectual property or brand, but it similarly lacks a direct presence in the foreign market. The licensee operates independently, and the licensor does not engage directly in the market, which limits operational control and responsiveness to local conditions.

A joint venture involves partnering with a local company to share resources and management in a new market, but the presence is not wholly owned by the company entering the market. While it allows for operational involvement, it does not provide the same level of control that a subsidiary would, as decisions are made jointly with the local partner.