Lecture 5: Entry Modes & FDI Motives Flashcards

1
Q

Entry mode choice

A

Choice of the form of operation firms use to enter foreign markets

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2
Q

Entry mode choice is crucial as there are important implications in terms of:

A

resource commitment, exploration vs. exploitation strategies, risk and uncertainty, and learning and knowledge transfer

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3
Q

The main factors to consider with entry mode choice are

A

home-host country distances, FDI motivation, host-country, firm strategy

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