Therisksinvolvedinusing contracts include costs of

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Unformatted text preview: sing contracts include costs of making and enforcing contracts in a foreign country relative to the United of States, riskof dissipation of proprietary knowledge, and risk deterioration in the quality of services if operated jointly with a host country partner or licensee. The reliabiIity coefficient for this measure was found to be 0.58. All of the above items, except sales and foreign earnings of the firm, were measured on appropriate 7-point bipolar scales. list of these items is given A in the Appendix. Independent assessments of these items were obtained im from each f r for three different countries, namely, the United Kingdom, Japan and Brazil. These countries werechosen to reflect different political and economic systems. Entry Choice The dependent variable the choiceof entry mode for a particular country. is Respondents indicated their choice preference amongive altematives including f CHOICE OF FOREIGN MARKET ENTRY MODE 13 no involvement, exporting, licensing, joint venture, and sole venture for each of three countries (U.K., Japan, and Brazil)...
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