What is one of the global market entry strategies?

Contractual agreements are a significant global market entry strategy because they allow a company to enter a new market with reduced risk and investment compared to fully owning operations. By using contractual agreements, a business can establish partnerships, licensing arrangements, or joint ventures with local firms, which can provide insights into consumer behavior, regulatory environments, and market dynamics that a foreign company might find challenging to navigate on its own.

This strategy enables companies to leverage the existing infrastructure and market knowledge of local partners, facilitating a smoother entry into the global market. Additionally, contractual agreements can minimize financial exposure while expanding the company's reach and potential for growth. Other strategies like direct marketing, public relations, and telemarketing do not inherently constitute market entry strategies; instead, they are various promotional and communication methods that can support a business once it has established a presence in a new market.