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Theremainder of thepaper is organized into three parts. The first part
reviews the relevant literature to develop the hypotheses. The second part
details the research setting, the operational measures, data collection, and
research method. The last section provides the results and discusses important managerial, theoretical, and public policy implications. LITERATURE REVIEW A ND HYPOTHESES
Normative decision theory suggests that the choicea foreign market entry
mode should be based on trade-offs between risks and returns.
A firm is
.-.n Investment. However,mode. ..thaLoffers.t heindicates that a firm’s
f e s ._..Ca,., ..
.choices may also be determined by resource availability and need for control
[Cespedes 1988; Stopford and Wells 19721. Resource availaltjility refers to
the financial and managerial capacity
of a firm for serving a particular
foreign market. Control refers to h ’ s need to influence systems, methods,
and decisions in that foreign market [Anderson and...
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- Summer '14