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
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
3
Q
The main factors to consider with entry mode choice are
A
home-host country distances, FDI motivation, host-country, firm strategy