Entry modes

4 important questions on Entry modes

What are the type of entry modes?

  • Non-equity (no investement)
    • Exporting
    • Licensing
    • Franchising
    • Alliance
  • Equity (company investement)
    • Greenfield
    • Acquisition
    • Joint Venutre
    • Alliance

What is meany by resource commitment?


By resource com- mitment we mean dedicated assets that cannot be redeployed to alternative uses without cost (loss of value). These assets may be tangible (e.g. physical plant) or intangible (e.g. management know-how).

What is meant by diessemination risk?


Dissemination risk refers to the risk that firm- specific advantages in know-how will be expropri- ated by a licensing or joint venture partner
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What are the foreign entry modes theories?

  • Transaction cost theory
  • Instituional theory
  • The electic paradigm
  • Internationalization process theory
  • Resource-based view
  • MNE types and entry mode choice
  • Lean Internatioanlization

The question on the page originate from the summary of the following study material:

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