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Unformatted text preview: exporting mode, butare willing to choose investment
modes in such markets. This can be attributed to the fact that the long-term
success of leasing operations in a foreign market is highly dependent on a
f m ’ s ability to enforce contractual obligations the lessee or the partner
fm. In a personal interview with a leading multinational leasing f m , it
was revealed that the fm did not wish to export equipment to a middle
eastern nationbecause, regardless of the nature of the contract, the equipment
became the propertyof the ruler of that nation. Itis probably much saferto
engage in leasing activity by investing in that nation and operating within
the framework of the domestic laws. Third,the results reveal that while firms
are interested in entering markets that are perceived to have high potential,
the existence of investment risks leads them to shy away from investments.
In such countries firms prefer to simply export. It is interesting to note that
the main effect of investment risk suggested no entry while that of market
potential suggested i...
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- Summer '14