F interested in entering such markets wouldlk to

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Unformatted text preview: ne the effect interrelationhs of ships among a f m ’ s ownership (ability to develop differentiated products, size and multinational experience), location (market potential and investment risk) and internalization advantages (contractual r isks) on its choice of entry modes in foreign m r e s The results provide broad support for the akt. hypothesized effects the interrelationships, while simultaneously confirming of previous findings on the separate effects of each type of determinant. The findings of t i study imply that though firms would like to establish hs market presence in foreign countries through direct investment, ability their to do so is constrained by their size’andmultinational experience. In addition, while the results support the general belief that m use investment modes f only in high potential markets, they also suggest that some f m s (large multinationals) may investinrelativelylowerpotential markets if their strategic objectives dictateso. However, firms are hesitant to enter markets that are considered risky. Such caution appears understandable. The longterm success of a ny foreign investment requires signific...
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