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Unformatted text preview: ompany regards them as the most important factor when choosing market entry mode. The trade barriers make them adapt their way of reaching the target country to avoid penalty duties in the target country, for example Brazil. These findings verify the theory brought forward by Koch (2001). Furthermore our findings in case two revealed that the company regards it as important to increase the cooperation with local partners in order to avoid penalty duties, which thereby influences the choice of market entry mode, and verifies the theory argued by Koch (2001). 5.3.2 Theory by Root (1994) Root (1994) argues that a company’s choice of entry mode for a given product/ target country is a net result of several, often conflicting forces. The author brings forward four external factors: target country market factors, target country production factors, target country environmental factors and home country factors. As mentioned in our conceptual framework we will focus on target country market factors, target country...
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