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possibility to transport not only products but also company personnel. There also has to be a
certain level of technical capacity in order for Purac’s technical knowledge to be demanded.
The respondent argues that if there are trade embargoes, it is not of interest for Purac to
establish on that market and when it comes to penalty duties, it is more important to increase
the local cooperation to be able to bypass the penalty duties, which can have a clear influence
of the company’s choice of market entry mode. Furthermore, Purac always assess the
competition before entering a new international market, as a way to measure if a successful
market entry is possible and through which way the entry should be performed. If the
competition is regarded as high, the company does not use entry modes that demand heavy
resource commitment. Also, presence of political stability is important for the company,
before establishing in the market. Furthermore the respondent states that, the geographic
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land