Unformatted text preview: internal/external category.
In addition to this Root (1994) states there is difference in the internal and external factors
when companies choose a market entry mode. The difference is that the company
management rarely can influence the external factors. In the final decision of market
entry mode, there is supposed to be a balance between different factors that are in conflict
with each other, and in the end a balance between risk and control must be established.
These external factors can seldom be affected by managers’ decisions and are external to
the company and may be regarded as parameters of the entry mode decision. Because no
single external factor is likely to have a decisive influence on the entry mode for
companies in general, these factors only encourage or discourage a particular entry mode.
The author also puts forward that a company’s choice of its entry mode for a given
product/ target country is a net result of several, often conflicting forces.
The factors influencing company’s choice of entry mode are according to...
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