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26<br />

<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />

FOREIGN ENTRY DECISION FOR MNCs<br />

Exploit competitive advantage<br />

through entry abroad<br />

Licensing or Management<br />

Contracts<br />

Majority or Wholly owned<br />

affiliate<br />

Produce Abroad<br />

Maintain Control over<br />

assets abroad<br />

Joint Venture<br />

Build from scratch Acquire or<br />

Merge or Takeover<br />

For all the decisions the company has to analyse the opportunities and risk<br />

factors, future potential and long term prospects available in the destination.<br />

Once the entry is wrong, a major pitfall occurs in one country of the entry<br />

level, it may cause a major damage to the company. Entry of ENRON in<br />

INDIA was one such incident one cannot forget.<br />

Only for Private Circulation

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