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Entry Move Decisions (What can Impact the choice of entry mode? (Internal…
Entry Move Decisions
What can Impact the choice of entry mode?
Internal Factors
Transaction Specific Factors
External Factors
Desired Mode Characterisitics
Internatlization (Sales and production facility)
Process
Home Market
Choice of Region/ Country/Market Selection Process
Foreign Market
Choice of the Global Marketing Mix Standardization Adaptation
Hierarchical Mode
High Costs
High Risk
Low Flexibility
High Control
Intermediates (Trade Agent)
Characteristics
Low Risk
High Flexibility
Low Cost
Low Control
Externalization (Export Mode)
Factors that would lead to Externalization
No International experience
low product complexity
Small Company Size
low product differentation advantage
Sociocultural Distance
Demand Uncertanity
MArket Size and growth
Trade Barriers
Intensity of Competition
Number of relevant Inbtermediaries