Other hindrances eg restrictive labor regulation and

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Unformatted text preview: try feasibility/ viability of MEM Some entry modes, like fully owned foreign subsidiary and international joint ventures, may be excluded by law in some countries; some of these exclusions may relate to selected industries considered to be of strategic significance for the state. Other entry modes like licensing may involve excessive know-how dissemination risk, particularly if the foreign country is not a signatory to the appropriate international conventions. Other hindrances (e.g. restrictive labor regulation and practices, cost of labor, insufficient level of skill) may discourage from establishing a subsidiary, or a joint venture operation in a foreign market. Investing in a foreign subsidiary may secure a favorable taxation treatment (for instance, tax holidays) and save the company a lot of money on avoiding paying custom duties (Koch, 2001). Characteristics of the overseas country business environment While the general characteristics of overseas country business environments are usually very easy to obtain these days, industry and company-specific information is usually more difficult to acquire. Whilst the former category of information is not always free from bias, complete and up-to-date, the latter is considered quite sensitive and usually not provided fo...
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This document was uploaded on 03/22/2014.

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