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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,
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.
- Summer '14
- The Land