IntroductionOver the years, much research has been carried out on the determinants and consequences of the mode of entry into foreign markets. For any company hoping to successfully achieve its long-term objectives, mode of entry is a strategic decision that will consequently impact the company's competitive advantage and performance. The main goal of any small or medium-sized business is to try to conquer new markets. This is because a new market leads to greater profits and, over time, the small business is no longer so small. However, the company would benefit more from a better understanding of the different modes of entry into the foreign market in order to ensure its success and ensure its smooth adaptation in the new market (Hutt, 2010). factors to consider when deciding how to enter a foreign market. Research suggests that a company is more likely to choose the entry mode that offers the riskiest return on investment. The decision on entry mode will depend heavily on the trade-offs between risks, control and returns. The choice of mode of entry into any new foreign market is determined by three main factors: rewards of ownership of a business, internalization advantages of integrating transactions within a company, and location advantages of a given market. Rewards of Business Ownership To succeed in new international markets, businesses must have asset power to secure an advantage. on businesses in the host country. The strength of a company's assets can be measured by the overall size of the company and its ability to produce differentiated goods and services. Additionally, the multinational experience of the company can serve as a benchmark for testing the foreign market (Tielman, 2010).ConclusionAfter considering all the different types of entry modes that one can choose to use, the decision Which entry form to use will inevitably remain a matter for company management. Management has a better understanding of the business and will need to decide which one to choose; are best suited to the business based on its size and level of growth. If a company is just starting out in the international market, the preferred mode of entry is exporting. There are a number of factors that management must consider when choosing which country to establish an international relationship with, not just distance. Some of these factors include the culture of the people of that country, the level of economic development of that country, and the government policies of the country (Gillespie, 2011).