Unformatted text preview: ant managerial and
financial resources even in markets that do not have high risks. In a high
risk situation, f m could make a risk-averse choice resultingn the market
being not served. 20 JOURNAL O F INTERNATIONAL BUSINESS STUDIES, FIRST QUARTER 1992 In addition to the preference for investment modes by large multinational
firms in lower potential markets, a number of other interesting interaction P effects emerged from the study. First, small with limited multinational
experience were found to prefer entry into markets that were perceived to
have high potential through a joint venture. This result indicates that
smaller, less multinationally experienced finns need to complement their
resource needs in order to service a potentially attractive foreign market.
argued in the hypotheses section, the
sharing of costs andrisks enables such
fr s to reduce the long-term uncertainty more efficiently [Beamish and
irms that have higher abilityto develop differentiated
Banks 19871. Second, f
products are concerned about the possible loss of their advantage in countries that are perceived as having higher contractual risks. They show a
strong dislike for the...
View Full Document
This document was uploaded on 03/22/2014.
- Summer '14