Second it can transfer its resources in technology

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Unformatted text preview: g etc. The third group, investment entry modes, includes joint ventures, foreign direct investment (FDI), and acquisitions etcetera (Bradley, 2002). Furthermore Root (1994) argues that from an economist’s perspective, a company can arrange entry into a foreign country in only two ways. First, it can export its products to the target country from a production base outside that country. Second, it can transfer its resources in technology, capital, human skills and enterprise to the foreign country, where they may be sold directly to users or combined with local resources (especially labor) to manufacture products for sale in local markets. From a management/operations perspective, these two forms of entry break down into several distinctive entry modes, which offer different benefits and costs to the company. These are: Export Entry Modes • Indirect • Direct Agent/Distributors • Direct Branch/ Subsidiary Contractual Entry Modes • Licensing • Franchising • Technical agreements • Service contract • Management contracts • Construction/ turnkey contracts • Contract manufacture...
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