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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
• Direct Agent/Distributors
• Direct Branch/ Subsidiary
Contractual Entry Modes
• Technical agreements
• Service contract
• Management contracts
• Construction/ turnkey contracts
• Contract manufacture...
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land