Argawal et al. (1992)

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Argawal et al. (1992) - Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internalisation Factors

There are four types of foreign entry mode: exporting, licensing, joint venture and sole venture.

Dunning (1977) discusses entry modes in his eclectic framework. (For more information, see Understanding the Global Firm, Lecture 3)

Firms that have lower levels of ownership advantages are expected not to enter foreign markets or use a low-risk entry mode, especially those that have high market potential, using joint ventures and licensing.

Location advantages can cause firms to invest abroad, although modes can change if the government changes policies regarding FDI.

Size/experience and market potential

Risk

Conclusion