This hs means that fitms tend to offset these risks

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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 of also 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.

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