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journal article Foreign Market Servicing: Beyond Choice of Entry ModeJournal of International Marketing Vol. 2, No. 2 (1994) , pp. 7-27 (21 pages) Published By: Sage Publications, Inc. https://www.jstor.org/stable/25048540 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $41.50 - Download now and later Abstract This article focuses on the operation method (or entry mode) that a company utilizes in developing its involvement in a foreign market. An overview and critique of 'economics' and 'process' approaches to this issue is undertaken. It is argued that both approaches use relatively constrained frameworks of influences on mode choice, and have yet to come to terms with the frequent reality of operation modes in combination. Methodological and conceptual issues arising out of the analysis are considered as a basis for moving forward the research in this area. Journal Information Journal of International Marketing is an international, peer-reviewed journal that is dedicated to advancing international marketing practice, research, and theory. Contributions addressing any aspect of international marketing are welcome. The journal presents scholarly and managerially relevant articles on international marketing. Aimed at both international marketing/business scholars and practitioners at senior- and mid-level international marketing positions, the journal's prime objective is to bridge the gap between theory and practice in international marketing. Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. journal article Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internalization FactorsJournal of International Business Studies Vol. 23, No. 1 (1st Qtr., 1992) , pp. 1-27 (27 pages) Published By: Palgrave Macmillan Journals https://www.jstor.org/stable/154882 Read and download Log in through your school or library Abstract Firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode. The options available to a firm include exporting, licensing, joint venture and sole venture. Several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature. These factors can be classified into three categories: ownership advantages of a firm, location advantages of a market, and internalization advantages of integrating transactions. This study examines the independent and joint influences of these factors on the choice of an entry mode. Multinomial logistic regression model is employed to test the hypothesized effects. Journal Information Journal of International Business Studies (JIBS) is a top-ranked peer-reviewed journal in the field of international business; its goal is to publish insightful, innovative and impactful research on international business. JIBS is multidisciplinary in scope, and interdisciplinary in content and methodology. JIBS is an official publication of the Academy of International Business. JIBS is published 9 times a year. Publisher Information Palgrave Macmillan is a global academic publisher, serving learning and scholarship in higher education and the professional world. We publish textbooks, journals, monographs, professional and reference works in print and online. Our programme focuses on the Humanities, the Social Sciences and Business. As part of the Macmillan Group, we represent an unbroken tradition of 150 years of independent academic publishing, continually reinventing itself for the future. Our goal is to be publisher of choice for all our stakeholders – for authors, customers, business partners, the academic communities we serve and the staff who work for us. We aim to do this by reaching the maximum readership with works of the highest quality. Rights & Usage This item is part of a JSTOR Collection. Which foreign market entry strategy gives a firm total control over its foreign operations?Direct investment
This kind of 'greenfield' investment – 'greenfield' meaning the establishment of new facilities – means complete control over the operations in the new market. Many countries welcome foreign investment of this kind.
Which mode of foreign market entry offers the most control and the highest potential return for a company?To decide which entry modes to use is depending on situations. Greenfield investment is the establishment of a new wholly owned subsidiary. It is often complex and potentially costly, but it is able to provide full control to the firm and has the most potential to provide above average return.
What is a drawback of licensing as a mode of entry into a foreign market?Disadvantages include the risk of an incompetent foreign partner firm and lower income compared to other modes of international expansion.
Which of the following modes of entry into a foreign market involves the most commitment?Detailed Solution. Direct investment-Foreign Direct Investment (FDI's) risk and profit potential are the highest in the foreign markets. Directly invest in facilities in a foreign market.
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