Startup internationalization aims to diversify revenue streams by accessing new markets and customer segments, thereby reducing the reliance on a single domestic market.

Licensing is not a common mode of startup internationalization as it involves granting permission to another company to use the startup's intellectual property or technology, rather than directly expanding operations into a foreign market.

Localization refers to the process of adapting a startup's products or services to meet the specific cultural, linguistic, and regulatory requirements of a foreign market.

Favorable exchange rates are not a challenge associated with startup internationalization, as they can actually benefit a startup by making its products or services more affordable in foreign markets.

Foreign direct investment (FDI) refers to the process of establishing a startup's operations in a foreign country by setting up a physical presence, such as a subsidiary or a branch.

Reduced production costs are not typically a benefit of startup internationalization, as expanding into foreign markets often involves additional costs related to localization, logistics, and compliance.

Incremental internationalization refers to the process of gradually expanding a startup's international operations over time, starting with smaller markets and then moving on to larger ones.

Acquisitions are not a common strategy for startup internationalization, as they involve the purchase of an existing company in a foreign market, which can be costly and complex.

Transcreation refers to the process of adapting a startup's marketing and communication strategies to suit the cultural and linguistic preferences of a foreign market, ensuring that the message resonates with the target audience.

Political instability is not typically a challenge associated with startup internationalization, as it is more relevant to countries with unstable political systems and high levels of corruption.

Joint ventures refer to the process of establishing a startup's operations in a foreign country through a partnership with a local company, sharing resources and expertise to enter the market.

Reduced competition is not typically a benefit of startup internationalization, as expanding into foreign markets often involves facing new competitors and established players.

Acquisitions refer to the process of establishing a startup's operations in a foreign country by acquiring an existing company, gaining immediate access to its market position, customer base, and assets.

Joint ventures are not a common strategy for startup internationalization, as they involve sharing control and decision-making with a local partner, which can lead to conflicts and disagreements.