It is however worth mentioning that our findings

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Unformatted text preview: depreciation/ appreciation does not affect the companies as they take measures to avoid currency losses. When it comes to the factor of cultural distance the company is case one argues that the cultural distance factor is of less importance and does not affect the choice of international market. The company in case two however, prefers markets with a small cultural distance, as they consider it easier to conduct business with a similar business culture. As for the home country factors, both companies have the same domestic market and similar domestic market conditions such as small market, high production cost and strong export promotion. When these terms are fulfilled the company has to choose a mode of entry and according to a compilation of influencing factors in the theory argued by Root (1994) the company in case one should use the entry mode of Branch/ subsidiary exporting. It is however worth mentioning that our findings placed the company by only slight margin in this category. Our data revealed that the company in case one mainly uses the market entry mode indirect and agent distributor exporting, thus contradicting the theory. Furthermore, a compilation of influencing factors in the theory argued by Root (1994) the company in case two should use to the entry mode of branch/ subsidiary exporting or equity investment/ production, but are in fact using Indirect and Agent /distributor exporting, which contradicts the theory argued by Root (1994). The resu...
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This document was uploaded on 03/22/2014.

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