LTU-DUPP-07075-SE

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Unformatted text preview: • Co-production agreements 3 INTRODUCTION Investment Entry Modes • Solo venture: new establishment • Solo venture: acquisition • Joint venture: new establishment/ acquisition Root (1994) argues that export entry modes differ from the other two primary entry modes (contractual and investment) in that a company’s final or intermediate product is manufactured outside the target country and subsequently transferred to it. Thus exporting is confined to physical products. Further Root (1994) states that contractual entry modes are long-term non equity associations between an international company and an entity in a foreign target country that involve the transfer of technology or human skills from the former to the latter. The third kind of entry mode is stated by Root (1994) to be the investment entry mode, which involves ownership by an international company of manufacturing plants or other production units in the target country. In terms of ownership and management control (which is the distinctive feature of this entry mode), foreign production affiliates may be classifie...
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This document was uploaded on 03/22/2014.

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