CBL Insights · Market entry

How to Choose a Foreign-Market Entry Model

A business may enter a foreign market through direct sales, an agent, a distributor, a local company or a joint venture. Each option gives it different responsibilities and control.

Market Entry & International ExpansionAuthor: Cross-Border LawPublished: 14 June 2026

Different objectives require different forms of presence

Compare who contracts with customers, who bears the commercial risk and what local activity each option requires.

Export

Test demand with limited local infrastructure.

Agency

Use local commercial support without transferring resale risk.

Distribution

Give a local counterparty the resale relationship.

Local entity

Establish a company to conduct local operations, subject to local requirements.

Joint venture

Share ownership where the partner is integral to entry.

A market-entry model is a commercial and legal decision

Direct export, agency, distribution, a local entity and a joint venture allocate control, risk and local responsibility differently. The choice changes with the activity, customer route, regulation, payment model and need for local operations.

Need to compare market-entry models?

A Market Entry Assessment maps the available options, constraints and practical sequence for the selected market.

Assess market entry