Q.Which of the following is NOT a mode of entry into international business?

International business is entered through arrangements such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries — each involving a cross-border commercial relationship of some kind. A form of domestic single-owner business organisation is not, by itself, a mode of entering a foreign market.

Options A, B, and C (exporting, licensing, joint venture) are all recognised modes of entering international business, whereas sole proprietorship describes how a single domestic business is owned and managed, with no necessary connection to operating across borders.

This question tests whether the modes of entry into international business can be distinguished from ordinary forms of domestic business ownership.

Option (A) Exporting — this IS a recognised mode of entry: a firm sells goods produced at home into a foreign market, either directly or through an intermediary. Not the answer.

Option (B) Licensing — this IS a recognised mode of entry: a firm permits a foreign firm to use its brand, patent, or technology for a royalty. Not the answer.

Option (C) Joint Venture — this IS a recognised mode of entry: a firm partners with a local foreign firm to jointly own and operate a new business entity. Not the answer.

Option (D) Sole proprietorship — this is a FORM OF BUSINESS OWNERSHIP (a single individual owning and managing a business), not a mode of entering a foreign market at all; a sole proprietorship could exist purely domestically and never touch international business. This is the correct answer because it does not belong to the list of international-business entry modes.

Students sometimes confuse forms of business ownership (sole proprietorship, partnership, company) with modes of entering a foreign market (exporting, licensing, joint venture, etc.) — these are two entirely different classification schemes, and a question can test either one, so read the question stem carefully to see which classification is being asked about.