5.Explain the equity-based and nonequity-based control mechanisms.
In equity-based foreign market entry, an international company has equity ownership and control of a foreign venture through foreign direct investment. (FDI). It needs not necessarily involve production, and could be a greenfield investment and could be wholly owned by the parent international company.
Nonequity-based refers to the international companies don't have the equity in the host country, but provide a variety of service and technologies,and keep in touch with the host country , then benefits from commerce.