Which mode of entry is an equity mode?

Indirect exports occur when a company sells its products to an intermediary who then exports them to foreign markets. This method does not involve equity investment in the foreign market, as the original company retains no ownership or control over the distribution process abroad.

Franchising allows a company to grant rights to another party to operate a business under its brand, typically involving a fee and a percentage of revenues. While it provides market access, it does not require the franchisor to invest equity in the franchisee's operations, making it a non-equity mode of entry.

Licensing involves granting rights to a foreign company to produce or sell products under a company's brand, usually for a fee or royalties. Like franchising, licensing does not entail equity participation or ownership in the foreign entity, focusing instead on contractual agreements without financial investments.