Question
PLEASE ANSWER ASAP. WILL GIVE THUMBS UP. Three modes of entry into a foreign market are Exporting, Licensing, and creating a Wholly-Owned Subsidiary. The Internalization
PLEASE ANSWER ASAP. WILL GIVE THUMBS UP.
Three modes of entry into a foreign market are Exporting, Licensing, and creating a Wholly-Owned Subsidiary.
The Internalization Theory focuses on the advantages of each entry mode when determining a market entry strategy. For example, a company might choose to create a wholly-owned subsidiary if it finds there are enough advantages to doing so when compared to entering into a joint venture or simply exporting.
For these four modes of entry, explain how control and risk can lead a company to decide that it is advantageous.
a) Why would control and risk result in a company choosing exporting? Licensing? A wholly-owned subsidiary? A joint venture?)
b) Why would control and risk result in a company choosing licensing?
c)
Why would control and risk result in a company choosing to create a wholly-owned subsidiary?
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