Forexample firms that have lowerlevels of

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Unformatted text preview: rexample, firms that have lowerlevels of ownershipadvantagesare expected to either not enter foreign markets or use a low-risk entry mode such as exporting. However, manysuch firms have been observed to enter foreign countries, especially those that have high market potential, using joint ventures andlicensingarrangements[Talaga,Chandran & Phatak 19851. This type of firm behavior can be better explained if the joint effect of ownership advantagesof the firm and location advantages of the market is examined. A critical theme that this study pursues is the examination of a number of such fr behaviors by evaluating the joint impact of a set of im determinants. A methodological featureof this study is the use of the survey techniqueto obtain information on the determinant factors. A n important advantage of this technique is that it provides direct m a u e ( s compared to proxy esrs a variables used by mostresearchers)of both location and internalization factors. The direct measuresare obtained by evaluating managerial perceptions about market potential and investment (location advantages), and risks costs of writing and enforcing contracts, risk of deterioration in the quality of services, and risk of dissipation of knowledge (internalization advantages) in a given host country...
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This document was uploaded on 03/22/2014.

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