Entry Mode |
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| Author:
| Kennedy, Robert
Koenig, Cynthia
Orloff, Mariana |
| ISBN: | 978-1-61674-135-8 |
| Publication Date: | Apr 2009 |
| Publisher: | William Davidson Institute At The University of Michigan, The
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| Book Format: | Paperback |
| List Price: | USD $20.00 |
Book Description:
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After a firm has decided to internationalize and targeted its geographic candidate it must select the entry mode, the organizational and contractual arrangement that facilitates the firm's bringing its products and services to the foreign market. This note presents a typology of the different modes, outlining the different strategies that companies can follow when going international: from exporting, licensing and franchising, to direct investments through wholly owned subsidiaries and...
More DescriptionAfter a firm has decided to internationalize and targeted its geographic candidate it must select the entry mode, the organizational and contractual arrangement that facilitates the firm's bringing its products and services to the foreign market. This note presents a typology of the different modes, outlining the different strategies that companies can follow when going international: from exporting, licensing and franchising, to direct investments through wholly owned subsidiaries and joint-ventures. the main purpose is to understand that each strategy has advantages and disadvantages and it should be used depending in the end goal that the internationalizing company has. This note includes a simple model that shows the trade-off between control and risk that deciding the entry mode implies.