Global Business Strategies: modes of entry for MNC
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What are the various modes of entry for a multinational corporation (MNC) to expand operations or sales to another country?
Why would an MNC select one mode of entry over another?
What change in conditions would alert an MNC to consider a different mode of entry
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Question: What are the various modes of entry for a multinational corporation (MNC) to expand operations or sales to another country?
Answer: There are a few different modes of entry. They are as follows:
1. Invest directly by a Greenfield venture.
2. Invest directly by acquiring a local firm.
3. Invest directly by starting a joint venture with a local firm.
4. Enter into a strategic alliance with a local firm.
5. The 4th alternative involves no direct investment in the host country, but the MNC can serve the host market via exports or by licensing their product to a local firm.
Question: Why would an MNC select one mode of entry over ...
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