Title: GLOBAL BUSINESS
|Date:||November 17, 2015|
|Length:||2 / 530|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
Although FDI is risky and expensive, the limitations of exporting and licensing as means for capitalizing on foreign market opportunities can be less effective. A firm will favor FDI over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive. FDI will be favored over licensing or franchising when it wishes to maintain control over its technological know-how, or over its operations and business strategy, or when the firm's capabilities are simply not amenable to licensing...
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FDI will be favored over licensing or franchising when it wishes to maintain control over its technological know-how, or over its operations and business strategy, or when the firm's capabilities are simply not amenable to licensing.
Limitations: Often constrained by transportation costs and trade barriers...
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