STRATEGIZING FOREIGN ECONOMIC ACTIVITY IN THE CONTEXT OF ENTERING FOREIGN MARKETS

Abstract

The article substantiates the strategy of foreign economic activity in the context of entering foreign markets. As a result, we applied a statistical regression to predict the relationship between dependent and independent variables, the main purpose of which is to predict the probability of proposed factors (firm size, International Experience, Innovation, Network, Product Characteristics, assets, export intensity, and industry) affecting the level of resource utilization obligations in firms ' choice of entry modeThe article also explains that the size of SMEs strongly and positively affects the extent to which firms participate in the choice of entry method.International experience also has a significant impact on firms ' decisions regarding participation in certain ways of entering the market. As expected, network relationships significantly influence the choice of ways to enter the foreign market. The intensity of assets and exports is indicated as positive and very important. Empirical results show that innovations not only significantly influence the firm's choice of a way to enter the foreign market, but also correspond to the forecast direction.Also, the product characteristic factor has a strong positive effect. In addition, firms that engage in higher levels of advertising are more likely to choose high-level resource commitments, such as joint ventures or direct investment. The high level of export intensity also encourages firms to choose high-level resource commitments. The industry also positively correlates with the probability of choosing high-level resources in the selected mode of entering the foreign market.