Unformatted text preview: es the interest to cooperate with a local partner. It is therefore considered the
single most important external factor when choosing market entry mode. The remaining
external factors (exchange rate stability, knowledge and information about the market, tax
advantages, market size and growth rate, uncertainty to assess demand, social and cultural
differences, laws and regulations and infrastructure) are of less importance even though they
influence in various degree for the decision of which way to enter a new international market.
Purac’s strategy when it comes to markets with high growth rate is to follow the development
of new emerging markets such as People’s Republic of China and India, and await the right
opportunity to make a market entry. The markets financial resources have to be sufficient in
order for the company to get involved. Purac does not have any restrictions from the Swedish
government regarding trade, except for following the national restrictions and trade
embargoes regarding which countries not to enter, for example North Korea. There...
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