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Unformatted text preview: Note, for example, that developing countries such Brazil and India, even
though not as attractive as the developed countries,may still have sufficient
potential and strategic importance to warrant consideration. An additional
benefit offered by these target marketsis the opportunity for higher returns
(in excess of the risks taken) due to the presence of greater market imperfections. Ecological models predict that only larger organizations have the
resources required to bear the risks associated with entering low potential
markets Lambkin 19881.
If these firms do decide to enter relatively lower potential markets,
may have a higher propensity to choose a sole venture mode to satisfy their
strategic need to coordinate activities on aglobal basis [Bartlett 1986;
Bartlett and Ghoshal 1986; DOZ, rahalad and Hamel 19881. Research on
global strategyhas suggested that such m s will or should be more concerned
with global strategic position than with the transaction associated with
a given market [Porter Fuller 19861....
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- Summer '14