What are equity and non equity entry modes?

Equity entry modes involve direct investments in a foreign market, where a company establishes a tangible presence, such as through joint ventures or wholly owned subsidiaries, thereby gaining control and sharing risks. Non-equity entry modes, on the other hand, include strategies like exporting, licensing, and Franchising, where companies leverage partnerships or contractual agreements without significant capital investment or ownership stakes. Each mode varies in terms of risk, control, and resource commitment, influencing a company's international expansion strategy.