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Unformatted text preview: n 1982; the overall penetration worldwide during the same period rose from an estimated 9.2% to 15.0% demonstrating the increasing use of leasing in the capital formation of countries
worldwide [Clark 19851.
The international leasing business cane divided into two basic categories:
(a) cross-border (or export) leasing, and (b) o v e m leasing (through foreign i
I i CHOICE OF FOREIGN MARKET ENTRY MODE 11 affiliateslsubsidiaries). Cross-border Ieasing, which is similar to exporting,
involves leasing of equipment owned by a fr in one country to a firm in
another country. It usually provides for the purchase of the equipment by
the lessee at the end of the lease contract period. In most countries, such
cross-border leases obtain government financing and guaranteessimilar to
those given to direct exports of equipment weidan 19841.
Overseas leasing involves setting up affiliates or subsidiaries through contracts and investments, respectively. These affiliates/subsidiaries draw upon
the experience and knowledge of the parent f for servicing the market
in the host country. For example, United State...
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This document was uploaded on 03/22/2014.
- Summer '14