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Unformatted text preview: production factors and home
Target country market factors
With target country market factors, Root (1994) mean that the present and projected size of
the target country market is an important influence on the entry mode, suggesting that the
break even sales volume has to be in relation with the company’s investment when entering a
new international market. The data revealed that the companies in both case one and case two,
disregard the breakeven sales volume when deciding which entry mode to use, and the
company in case one argues that the factor does not influence their choice of market entry
mode, thus contradicting the theory stated by Root (1994). The company in case two has yet
another view of the issue, which is to, simply disregard markets where competition is heavy
and unfavorable and focus on markets which are less competitive, thus contradicting the
theory argued by Root (1994).
Target country production factors
Root (1994) state that target country production factors influence the entry mode because the
quality, quantity, and cost of raw materials, labor...
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