FDIs, such as greenfield investment in the target foreign market, route the management efforts and the flow of financial capital from the home country to the foreign country. The investment volume becomes concentrated in the foreign market, and the corresponding risk increases due to the regional distance and environmental circumstances that are naturally unfamiliar compared to the home market surroundings. The foreign market environment has a direct impact on a firm’s entry mode strategy in terms of the desired control and the perceived financial risk. Political uncertainties are not conducive to the establishment of WOS. Uncertainties in a country regarding the protection of intellectual property rights, for example, reduce the attractiveness ...
Get Market Entry Strategies, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
