subsidiaries. While (Meyer, Estrin, Bhaumik & Pen 2009) has described Greenfield, Acquisition, Joint Venture as three entry strategies in the emerging markets. Here I am going to describe three viable strategies:

Three Entry Strategies:

Equity Based Venture: In this strategy, a company can enter into foreign market by holding equity ownership and control of company through foreign direct investment. These type of ventures are useful in that countries where the risk is low, markets are stable. These can be done for various purposes like to obtain raw materials, to make products for export to home country. Equity based ventures are further divided into wholly owned and joint venture (Phatak, Bhagat & Kashlak 2009).

Wholly Owned Subsidiaries: Subsidiaries in which foreign countries has full control and ownership in the host countries are called wholly owned subsidiaries. These are of two types:

Greenfield: Greenfield means set up a new entity in foreign company from scratch by using locally available sources.

Acquistions: It means to capture the existing business running in the foreign country.

Joint Venture: It means to establish a subsidiary in foreign company by two or more companies by sharing resources. It is effective when the amount of capital invested or risk is huge, a single company cannot afford it, markets are unstable and lot of risk is available in the host country. As Indonesia has lots of oil reserves and these requires lots of capital, joint venture is an effective way to enter that market (Meyer, Estrin, Bhaumik & Pen 2009).

Section 4: