Which is an equity mode?

Indirect exports involve selling goods to an intermediary who then exports them to foreign markets. This method does not require capital investment in foreign operations and thus does not represent an equity mode; rather, it is a low-commitment approach to international trade.

Licensing enables a company to authorize another entity to produce and sell its products in exchange for royalties or fees. While it provides a way to enter foreign markets, it does not involve shared ownership or equity investment, making it a non-equity mode of market entry.

Franchising allows one party to operate a business using the trademark and business model of another. Although it involves some level of partnership, the franchisee typically invests their own capital and does not share ownership with the franchisor, categorizing it as a non-equity arrangement.