Local agent or importer Non-Ethiopian businesses were barred from wholesale trade and retailing, except for locally produced goods. For multinational businesses that exported to Ethiopia, working through a local partner was the only way to sell. An Ethiopian partner had existing relationships and knew how to manage the local distribution channels and other on-the-ground challenges. Although the multinational had less control over sales and marketing, it was a low-risk way to enter the market. Licensing arrangement Foreign businesses could license their brand, technology, or products to local partners or designate a local franchisee. Having goods produced locally allowed for more competitive pricing and access to the local partner’s understanding of how to sell and distribute in local markets. The margins for this approach were typically thinner, and there was risk of infringement on intellectual property. Licensing and franchising were relatively rare compared to other modes of market entry. Joint venture In a joint venture, multinational corporations could maintain greater control while benefiting from the advantages offered by a local partner. The local partner could be a private entity or the government, which might keep an equity stake. However, multinationals that planned to export most of their output or to reinvest profits in the joint venture were exempt from this requirement. Subsidiary A foreign parent could set up wholly owned subsidiary or branch as a limited liability company. With a subsidiary, a multinational could avoid coordination and alignment issues with any local partners and protect proprietary technology or know-how.