Firms enter foreign markets for many reasons. Successful entry depends on matching the firm's strategy and competencies to the right kind of market conditions. Choosing which foreign markets to enter will have long-term implications for the success of any business. Firms have three basic decisions to make: which markets to enter, when to enter those markets, and on what scale they should enter the market. There is no single, correct answer for all firms. Each firm must decide the best approach based on its strategic approaches and the realities of themarket. Read the overview below and complete the activities that follow. A number of factors must be considered when a firm chooses to enter a foreign market. These elements are interrelated, but separate analyses and decisions must be made. Once these elements become clear, an integrated approach will emerge. Answer the following questions, and then confirm that you've developed a good approach. Your firm is at a major turning point. You've just sold off a successful division, and you have a substantial amount of cash you can invest back into the firm. You've also decided additional growth for your personal care products will come from outside the country, not domestically. You've had some limited experience doing business internationally, and you're building the competencies you'll need. Your product is innovative though there are competitive products already in the market. It will appeal to a large market, and you and your senior management are willing to take risks to capture a significant market advantage.