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Unformatted text preview: he advantages that they gain through product differentiation.
The trend towards globalization has meant that not only are multinational
firms taking a global view their strategies but countries are beginning
to recognize that their economic development strategies must take on a
global dimension.This study shows that f ms that have a higher preference
for investment entry modes are sensitive to hvestment/contractual risk-related
attributes. The governmentsin host countries, therefore, will not only have
to develop policies that make it attractive for foreign
firmsto invest in their
markets, but more importantly, will have to reduce their risk perceptions
through regulations that pennit repatriation of profits, majority ownership
and control, patent protection for technology/products and enforcement of
contracts. From the government’s perspective, it shouldbe noted that, regardless of the stage of economic development of the country, policy variables
that reduce the risk will have a posi...
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This document was uploaded on 03/22/2014.
- Summer '14