BU491 Study Guide - Midterm Guide: Monsanto, Extortion, Trade Route
Document Summary
Technical test set #1: numerous factors should be considered when analyzing potential entry modes. Please define and describe seven (7) of these factors. With management know-how, the firm does not have a high risk of losing control to franchisees or joint venture partners. If the firm"s competitive advantage comes from their technological know-how in production, licensing and joint venture entry modes would be avoided. This minimizes the risk of losing control of that technology and expertise. In such a case, it would be beneficial to have an exclusively owned subsidiary in that foreign country that allows the firm to profit from their own technological competencies. Depending on how much research is done with regards to the local markets (consumer behaviour, demands, price sensitivity etc. ), joining forces with a local partner may be beneficial to the company"s success. Costs and risk involve elements such as development, management and sales.
